Uncovering The Drivers Of Chinese Outward FDI In The Arctic States:Insights From Denmark,Canada And Russia

Chinese outward foreign direct investment(OFDI)is increasing nowadays at an unprecedented level.Wide Chinese outward FDI(COFDI)geographical distribution comprises 156 countries,accounting for COFDI flows total value worth USD $183.1 billion in 2016.(UNCTAD,2016).Chinese economy transformation and development have resulted in COFDI shift from acquiring raw materials to technologically oriented investment aimed at bringing newest technological innovations to the country and adjusting them to Chinese economy needs.Chinese investment large scope and transitional nature determine an ultimate necessity of COFDI close examination.This paper research topic is the drivers of Chinese outward foreign direct investment(FDI)with a specific focus on the Arctic states as a way to illuminate this issue.The case is interesting to investigate because there are serious regional differences in the value and number of projects in different Artic states as well as significant decrease and increase of Chinese outward FDI(OFDI)annual flows in particular Artic countries.Investigating COFDI in the three selected Arctic states,we found out that GDP,GDP per capita and resource endowments have most significant influence on COFDI.Our case studies applied to host countries economic and business characteristics showed that Chinese firms are attracted to big markets and natural resources in OECD countries that contradicts most COFDI theories.Amighini's et al.study results better approximate our findings that is why we consider it to be most accurate among existing COFDI theories.Thus,the case of Arctic states provides a useful mechanism for investigating the importance of the various factors that are believed to shape COFDI.