CEU Electronic Theses and Dissertations, 2018
| Author | Boros, Gábor Péter |
|---|---|
| Title | How to Tame the Dragon: Understanding Ethiopia's Success in Attracting Chinese Private FDI |
| Summary | This thesis follows up on the sectoral shift in Chinese outward foreign direct investment from resource extraction towards manufacturing, brought about by increased involvement of private enterprises. These private companies carry the potential to further Sub-Saharan African (SSA) countries’ economic growth through capital injection, technology spillover and increased intercompany linkages. However, SSA countries differ in their success to attract this beneficial form of investment, therefore, the main question of this thesis is what explains Ethiopia’s achievement in attracting large flows of Chinese private investment, while other SSA countries failed to do so. To answer this question, the thesis utilizes Dunning’s Eclectic theory of FDI with particular focus on locational advantages, furthermore, it analyses the Sino-Ethiopian diplomatic relations, to find if there are special links between the two countries, enabling the investment tide. The thesis’s main findings are that Ethiopia does own some specific locational advantages, however, it fares below the regional average in most indicators. Therefore, its special political relation with China, along with its government’s incentive structure and focus on manufacturing are crucial driving factors in attracting private Chinese enterprises to the country’s manufacturing sector. |
| Supervisor | Li, Andrew Xiang |
| Department | International Relations MA |
| Full text | https://www.etd.ceu.edu/2018/boros_gabor.pdf |
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