Why do the Chinese make direct investment in the Europe? Insights from disaggregated bilateral data

This study explores the economic factors of foreign direct investment (FDI) from China to Europe. By drawing data over 8 years and dataset International Monetary Fund (IMF) World Bank (WB), we found that Chinese FDI outflows Europe are driven by recipient country's fundamentals (trade openness, resource, institutional quality, growth). These findings confirm current literature while asserting counterintuitive facts. One many points is less likely seek out channel in large status. More importantly, this differs extant using disaggregated panel bilateral trade openness. Therefore, our results would draw policy implications terms international finance.