CEU Electronic Theses and Dissertations, 2020
| Author | Rencz, Flóra |
|---|---|
| Title | Chinese Foreign Direct Investment in the European Union: An Empirical Analysis |
| Summary | In recent years, Chinese foreign direct investment (FDI) has been exacerbating fears in the European Union (EU). While Chinese FDI stock in the Bloc has been declining for the past two years, it is increasingly concentrated in sectors that are considered strategically important by the EU. The EU has no harmonised FDI policy, but as a response to growing anxieties, the European Commission has put forward a non-mandatory FDI screening framework specifically to address Chinese FDI inflows. The mechanism goes into effect in 2020. To address the EU’s fears about Chinese investments with efficient policies and to identify wanted and unwanted investments, it is crucial to understand the determinants of Chinese FDI flows to the EU. This thesis employs panel data analysis to investigate these determinants, using data from between 2003 and 2018. My results show that the number of patent applications in the host country has a positive significant impact on Chinese FDI inflows, while FDI restrictions have a significant negative impact. Market growth, political stability, corruption control, and trade relations are statistically insignificant. This thesis contributes to the literature with up-to-date empirical estimations and consideration for recent political developments such as the new EU FDI screening framework, shifting Chinese investment strategies, and rapidly deteriorating EU-China relations. |
| Supervisor | Li, Andrew X. |
| Department | International Relations MA |
| Full text | https://www.etd.ceu.edu/2020/rencz_flora.pdf |
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