Assignment First



中国有一个独特的不同路径的ODI相比,大多是见证了从发达国家,主要是面向市场的其他国家。中国另一方面是一个中央政府非常重要的所有权是社会主义经济。在大多数国家,向外扩张是在社会变革和所有权转变的背景下发生的。类似的变化已经在中国也能看到,主要是在私有制的赞成通过的份额下降,国有部门在经济总量通过一系列私有化计划的实施(Garnaut,et al.,2006)。这一过渡发生在1990年代,当时私营部门在更具竞争力的部门开始发挥关键作用,而国有企业则集中在重工业部门(钢铁)、资源(石油)和公用事业和基础设施(电力)方面(宋等人,2011)。



The Chinese ODI has increased dramatically since 2001 . This reason can be attributed to the entering of China in WTO which gave her increased access to international trade. However, the sudden entrance of China in WTO cannot be coincidence. There has to be some internal motivation for outward investment. However, before going into that, it would be prudent to analyze the internal state of China and the participants in ODI.

China has a uniquely different path of ODI as compared to other countries for it is mostly witnessed from developed countries that are largely market oriented. China on the other hand is a largely socialistic economy with a very significant ownership of the central government. In most countries, outward expansion has occurred in a backdrop of social change and ownership transition. A similar change has been seen in China as well, mostly in the favour of private ownership through a declining share of the state sector in the total economy through a series of privatization programs being implemented (Garnaut, et al., 2006). The transition occurred in the 1990s when the private sectors started playing a key role in the more competitive sectors whereas SOEs concentrated in the sectors of heavy industries (steel), resources (petroleum) and utilities and infrastructure (electricity) (Song, et al., 2011).

China has adopted a gradualist reform process (Peng, 2000) from socialism to capitalism and has grown increasingly tolerable to inward FDI. Unlike the Russian Federation which adopted a shock therapy and is still struggling with moderate levels of growth, PRC has experienced a spiked growth in the national income, inward FDI and exports growth. These factors can influence the ODI from China, contrary to the conventional Investment Development Path which started with a direct and bivariate relationship between development of the economy and ODI (Dunning, 1981). The indicator of development used here is the per capita GDP of the economy. However, later modifications suggested a different approach.