An Analysis Of Economic Effects Of China’s Resource-seeking Outward Direct Investment

The China’s demand for global resources in is expanding rapidly following the sustained economic growth. This brings about the rapid growth of resource-oriented outward direct investment (ODI). This paper starts from analysis of the characteristics of China’s resource-seeking ODI based on the actual investigation and theoretical investigation. It’s main objective of the paper is to give an empirical study on the impacts of resource-oriented ODI on China’s import and export, employment and economic growth. The paper is arranged as follow: literature review of the economic effects of resource-seeking ODI on the home country, analysis of the overall situation and the characteristics of the resource-oriented foreign direct investment in China, theoretical mechanism and empirical analysis of the economic impact of resource-oriented ODI, proposals on policy to promote and improve the resource-oriented ODI. The import and export, employment, investment, GDP, economic growth and investment company growth, technological progress, all of the above will have an impact from the FDI in the theoretical view. Due to the limitations of the statistical data, the study mainly focus on the three aspects,that is, the effects of trade, employment and economic growth.The main findings are:(1) the basic motivation of Chinese resources-seeking ODI is to meet growing domestic needs and to achieve diversified supply.(2) the basic characteristics of the China’s ODI is the flexible modes, and wide geographical distribution.(3) the ODI has a positive effect on China’s trade.(4)it has a positive effect on China’s, employment.(5) it has a positive effect China’s GDP growth, but the fixed effects are significantly regional differences, esp. in Beijing, Shanghai, Chongqing, Tianjin, western and coastal areas and the northeast region. The policy implications are:governmental policy guidance and administrative services are very important for the establishment of the industry leaders; it needs to bring up a high-level international staff, improve risk awareness and proper risk control, and e establish a risk guarantee mechanism of foreign direct investment. At the same time, we should highly concern about the economic impact of resource-oriented ODI on host countries.