A Gravitational Model for Estimate the Determinants of Outward Foreign Direct Investment of China

Marco MELE; Angelo QUARTO

Article Details

A Gravitational Model for Estimate the Determinants of Outward Foreign Direct Investment of China

Authors:

Marco MELE | Angelo QUARTO

Publisher:

İlhan ÖZTÜRK

Journal:

International Journal of Economics and Financial Issues 2017 Vol.7 Issue 1, pp.1-5

Document Type:

Article

Publication Date:

2/2017

Document Language:

Turkish

Document ID (Org No.):

2000811980

Frequency:

Bimonthly

eISSN:

2146-4138

Abstract:

 

Gravity models utilize the attractive force concept as an analogy to explain volume of trade or capital flows. This paper aims at proving that direct
 investment flows between China and a group of South-East Asian countries are determined by standard variables included in gravity models such
 as: Gross domestic products of home and host economy and distance between them. In our gravity model on foreign direct investment (FDI) we
 include not only gravity variables but also other variables that may explain what factors affecting Chinese outward FDI (OFDI): Political risk, cultural
 proximity, the degree of openness to international trade and a proxy for natural resources. This paper, after having defined the variables that are
 capable of influencing Chinese OFDI, will suggest a method of econometric calculation of the gravitational model based on Prais-Winsten regression;
 correlated panels corrected standard errors.

Article Details

A Gravitational Model for Estimate the Determinants of Outward Foreign Direct Investment of China

Authors: Marco MELE | Angelo QUARTO

Publisher: İlhan ÖZTÜRK

Journal: International Journal of Economics and Financial Issues 2017 Vol.7 Issue 1, pp.1-5

Document Type: Article

Publication Date: 2/2017

Document Language: Turkish

Document ID (Org No.): 2000811980

Frequency: Bimonthly

eISSN: 2146-4138

Issues

Authors:

Marco MELE | Angelo QUARTO

Publisher:

İlhan ÖZTÜRK

Journal:

International Journal of Economics and Financial Issues 2017 Vol.7 Issue 1, pp.1-5

Document Type:

Article

Publication Date:

2/2017

Document Language:

Turkish

Document ID (Org No.):

2000811980

Frequency:

Bimonthly

eISSN:

2146-4138