Chinese Outward Direct Investment in Africa – Determinants and Implications

Abstract: In the course of China’s current ‘going global’ strategy, Chinese multinational enterprises are increasingly investing in Africa. Against this background, this paper empirically investigates the determinants of Chinese outward direct investment in Africa. The results suggest natural resource-seeking and market-seeking motives to be the main drivers of these investments. In order to unfold a sustainable positive effect on the African host countries’ economic development, proactive African involvement in the investment projects will be required.