Can Existing Theories Explain China’s Outward Foreign Direct Investment in Belt and Road Countries

This study examines the extent to which existing foreign direct investment (FDI) theories apply Chinese in Belt and Road Initiative (BRI) countries. is important because explanations of outward FDI (OFDI) generally make scant reference these theories. By using OFDI data for BRI countries between 2003 2017, we tested hypothesizes applicable by both pooled ordinary least squares (PLOS) stochastic frontier analysis (SFA) methods. The results show that a large part OFDI. likely choose with big market size, abundant natural resources, cheap unskilled labor, stable politics, good infrastructure, high trade cost cost. These positive findings notwithstanding, they do not invalidate alternative factors cited commentators have been subject testing, may require use qualitative analytical approaches.