Economic determinants of Chinese Foreign Direct Investment into Africa. A comparison with other emerging countries.

Foreign direct investment (FDI) is one of the most important indicators in the economic investment field since a long time, but economists never stop studying it. In this study we will focus on the Chinese foreign direct investment into Africa. Although China and Africa are far apart, the friendship between China and Africa has a long history and a solid foundation. So, the following questions come: What are Chinese FDI policies over time? Why African countries attract Chinese foreign investments? Compared with other countries’ investors, are Chinese investors different in Africa? In order to better understand these questions, in this study we list the common FDI determinants: institutional environment, taxes, market size, geographic distance, infrastructure, government ownership, resource endowment, labour costs, co-location (agglomeration) and trade openness. We do empirical analysis with the conditional logit model by using fDi Market data of time period 2003 to 2019. We use conditional logit models to compare Chinese FDI determinants with those coming from other emerging countries like India and Russia.