Political Risk Distribution of Chinese Outward Direct Investment — an Empirical Study from 2006 to 2017
https://doi.org/10.26794/2226-7867-2019-9-4-126-135
Abstract
The purpose of this paper is driven by the author’s desire to contribute to the ongoing debate as to whether the internationalisation of Chinese Transnational corporations (TNCs) in foreign direct investment is due to conventional logic. The author selected 15 indirect variables from the data of the ‘Coordination and Resource Group’ (CRG) and the ‘International Heritage Foundation’ and applied the principal component analysis (PCA) method to develop a new Political Risk Index (PRI). It could assess the multiple dimensions of political risks for 139 countries. Using this index as a fundamental criterion, the author investigated the changes in Chinese Outward FDI in terms of directions and volumes of investments, annual investment flows and their distribution by sectors of the economy from 2006 to 2017. As a result of the study, the author found that the vast majority of Chinese Outward FDI during this period was concentrated in countries with medium and low levels of political risks.
About the Author
G. Qiuyu
International Laboratory of World Order Studies and the New Regionalism, National Research University “Higher School of Economics”; Johns Hopkins University
Russian Federation
QIUYU GAOYAN, Doctoral Candidate, Associate Researcher; graduate student
Russian Federation
QIUYU GAOYAN, Doctoral Candidate, Associate Researcher; graduate student
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Review
For citations:
Qiuyu G. Political Risk Distribution of Chinese Outward Direct Investment — an Empirical Study from 2006 to 2017. Humanities and Social Sciences. Bulletin of the Financial University. 2019;9(4):126-135. (In Russ.) https://doi.org/10.26794/2226-7867-2019-9-4-126-135
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