CWR > Volume 8(2); 2022 > Current Development
Research Article
Published online: September 1, 2022

Outward FDI: Determinants and Flows in Emerging Economies: Evidence from China

Mohamad Zreik & Badar Alam Iqbal & Mohd Nayyer Rahman
Northwest University Institute of Middle Eastern Studies
Xi'An, Beilin, Huancheng S Rd West Section 710069, Shaanxi Province, P.R. China.
Corresponding Author:

ⓒ Copyright YIJUN Institute of International Law. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License ( which permits unrestricted non-commercial use, distrJuvenile Offenders in Community Corrections: A Systemic Look at Risk Evaluation Methods to Implement UN Resolutions under the Chinese Legal Systemibution, and reproduction in any medium, provided the original work is properly cited.


Outward Foreign Direct Investment (OFDI) is the cross-border capital flow with the objective of the long-term association having at least a ten percent stake in the equity of the host country firm. In the case of new investment, the total equity is OFDI. This research aims to analyze OFDI in the context of China. The lasting interest is considered 10% equity, thereby saying that if the cross-border investment is at least 10% of the equity share capital, the investment would be considered FDI; if below 10%, it is considered to be a Portfolio Investment. We have applied a more emic approach and discussed the determinants of multinational companies (MNCs) from China. Using an exploratory and qualitative approach, case studies of Chinese MNCs are discussed. Secondary data is utilized to obtain a closer insight into the determinants of OFDI from Chinese MNCs. At the end of this paper, suggestions for OFDI policymakers and study limitations are discussed. This research makes recommendations to the Chinese government regarding OFDI in connection with their economic development.

Keywords : OFDI, Capital Flows, Emerging Economies, Eclectic Paradigm Theory, Greenfield Investment, Merger & Acquisition

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