The regional risk of Chinese resource-typed OFDI from institutional perspective

Chen Feiqiong; Wang Xuanzi

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Science Research Management ›› 2012 ›› Issue (10) : 121-128.

The regional risk of Chinese resource-typed OFDI from institutional perspective

Chen Feiqiong, Wang Xuanzi

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Abstract

In order to explain the international political dilemma of Outward Foreign Direct Investment (OFDI) from China, especially considering the sensitivity of resource-typed investment, institutional development level is combined with bilateral political relationship and resource diversification for reexamining the regional risk. By using intelligent clustering method and AHP model, an analysis on institution, political sensitivity, and resource diversification capability of 44 host countries with the major investment from China is given to estimate the interactive effect. And the result indicates that Chinese resource-typed OFDI in the countries with different institutional development level is affected by different risk factors, the political sensitivity between two counties plays a very significant role. It is suggested that Chinese investors should focus on the unexpected risks caused by political sensitivity in the countries with high institution development level, in the meanwhile fully assess the risks from economic and social scope as well as resource diversification in the countries with low institution development level.

Key words

resource-typed OFDI / institutional development level / political sensitivity / regional risk

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Chen Feiqiong, Wang Xuanzi. The regional risk of Chinese resource-typed OFDI from institutional perspective[J]. Science Research Management. 2012(10): 121-128

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