Motives and Determinants of China’s Foreign Direct Investment in Rwanda

HABYARIMANA Jean D’Amour; WU Xiang Feng

doi:doi:10.11648/j.ijebo.20170502.14

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Motives and Determinants of China’s Foreign Direct Investment in Rwanda

HABYARIMANA Jean D’Amour, WU Xiang Feng

Published in International Journal of Economic Behavior and Organization (Volume 5, Issue 2)

Received: 11 April 2017 Published: 12 April 2017

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Abstract

In the recent past many developing and emerging countries have undertaken a dramatic shift by moving from isolationist, import substitution police to open market policies aimed at increasing foreign direct investment. The main objective of this paper is to investigate if the implementation of China foreign direct investment in Rwanda will have a positive effect in the country. In this paper, we survey some theoretical and empirical literature on the motive and determinant of Chine FDI. Strategic, behavioral and economic consideration appears to the basic motivations for FDIs. In fact the main determinants of FDIs consist of market size variable, labor market conditions, institutional variables, macroeconomic policy variable and global supply of FDIs. This paper states contribution of China FDI’s to economic development of Rwanda and the mainly highlights the tangible benefits that FDI’s produces both in China and Rwanda. Finally we will propose policy suggestion for Rwanda to attract better and utilize FDI’s from China. This paper is no doubt a contribution to the existing literature on FDI and would therefore guide policy reforms on China FDI’s in most developing countries especial in Rwanda.

Published in	International Journal of Economic Behavior and Organization (Volume 5, Issue 2)
DOI	10.11648/j.ijebo.20170502.14
Page(s)	67-72
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Motives, Determinants, Foreign Direct Investments. Policy Suggestion

References

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[2]	Ajiyi, s. l (2006). The Determinants of foreign direct investment in Africa: a survey of the impact and potential, African economic Research consortium, Nairobi Kenya level [J] journal of Africa economic research, 2006. p:209-215
[3]	Bevan, A. A & Estrin, S. (2004), the determinants of FDI into European transition economies [J] journal of comparative economics, 32(4):775-787.
[4]	Child, J. and S. B. Rodrigues (2005). "The internationalization of Chinese firms: a case for theoretical extension?" Management and organization review (3): 381-410.
[5]	Compos and YUKO, (2006) Sectoral composition of foreign direct investment and external vulnerability [M] working paper International monetary fund 2006 (1) 1-48.
[6]	Dunning, J. (1998) location and multinational enterprise: A neglected factor? Journal of international business studies Vol. 29. No. 1, 45-66.
[7]	Host; T. (1972) “Firm and industry determinants of the decision to invest abroad: An Empirical study’’, Review of economics and statistics, August.
[8]	Hymer, S. (1976), the international operation of national firms: A study of foreign direct investment flow [M] mass. Cambridge: MIP Press (15^th may 1976) p.200-222.
[9]	Jere Vilkman Motives and location factors of China foreign direct investment in Finland and Sweden [D] Turun yliopisto University of Turku 2011. P: 17-35.
[10]	NBS/MOFCOM. Statistical Bulletin of China’s outward Foreign Direct investment in 2015[M]. Beijing China statistic press, 2015.
[11]	ODI (2010), Foreign Direct Investment flows to low –Income Countries: Review of evidence Overseas Development Institute. September. www.odi.org.uk /publication s
[12]	ODI (2010), Foreign Direct Investment flows to low –Income Countries: Review of evidence Overseas Development Institute. September. www.odi.org.uk /publication s
[13]	Phileppe Gugle & Bertram Boie. The emergence of Chinese FDI: Determinants strategies of Chinese MMEs. Copenhagen business school, 10^th October 2008 paper presented at the conference. P: 9-20.
[14]	Prabhakar, AC., (2010) an investigation of the global economic and financial crisis African journal of marketing management 2[3] pp. 044-068.
[15]	UNCTAD FDI\TNC database (www.unctad.org/statistics)accessed on the 5^th September 2016.
[16]	Vincent Byusa (2010), Chinese external to assistance to Rwanda [J] NUR-Rwanda journal of social sciences, 2010(19) 75-80.
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[18]	Tori Carmel High: (2009) To Rwanda and Back: A study examining the feasibility of successful foreign direct investment in Rwanda, [D] University of Arkansas, 2009.
[19]	Zhan, X (1995) .Foreign investment policy, contribution and performance, in foreign direct investment and economic growth in China [M] conference paper 24-25, 2006[ 4] pp.5-10.
[20]	Sauvant, K. P (2006). New sources of the FDI: Bric’s .Outward FDI from brazil, Russia, India and China. [J] journal of World Investment &Trade 6 (October), 639-709.

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APA Style

HABYARIMANA Jean D’Amour, WU Xiang Feng. (2017). Motives and Determinants of China’s Foreign Direct Investment in Rwanda. International Journal of Economic Behavior and Organization, 5(2), 67-72. https://doi.org/10.11648/j.ijebo.20170502.14

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ACS Style

HABYARIMANA Jean D’Amour; WU Xiang Feng. Motives and Determinants of China’s Foreign Direct Investment in Rwanda. Int. J. Econ. Behav. Organ. 2017, 5(2), 67-72. doi: 10.11648/j.ijebo.20170502.14

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AMA Style

HABYARIMANA Jean D’Amour, WU Xiang Feng. Motives and Determinants of China’s Foreign Direct Investment in Rwanda. Int J Econ Behav Organ. 2017;5(2):67-72. doi: 10.11648/j.ijebo.20170502.14

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@article{10.11648/j.ijebo.20170502.14,
  author = {HABYARIMANA Jean D’Amour and WU Xiang Feng},
  title = {Motives and Determinants of China’s Foreign Direct Investment in Rwanda},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {5},
  number = {2},
  pages = {67-72},
  doi = {10.11648/j.ijebo.20170502.14},
  url = {https://doi.org/10.11648/j.ijebo.20170502.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20170502.14},
  abstract = {In the recent past many developing and emerging countries have undertaken a dramatic shift by moving from isolationist, import substitution police to open market policies aimed at increasing foreign direct investment. The main objective of this paper is to investigate if the implementation of China foreign direct investment in Rwanda will have a positive effect in the country. In this paper, we survey some theoretical and empirical literature on the motive and determinant of Chine FDI. Strategic, behavioral and economic consideration appears to the basic motivations for FDIs. In fact the main determinants of FDIs consist of market size variable, labor market conditions, institutional variables, macroeconomic policy variable and global supply of FDIs. This paper states contribution of China FDI’s to economic development of Rwanda and the mainly highlights the tangible benefits that FDI’s produces both in China and Rwanda. Finally we will propose policy suggestion for Rwanda to attract better and utilize FDI’s from China. This paper is no doubt a contribution to the existing literature on FDI and would therefore guide policy reforms on China FDI’s in most developing countries especial in Rwanda.},
 year = {2017}
}

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TY  - JOUR
T1  - Motives and Determinants of China’s Foreign Direct Investment in Rwanda
AU  - HABYARIMANA Jean D’Amour
AU  - WU Xiang Feng
Y1  - 2017/04/12
PY  - 2017
N1  - https://doi.org/10.11648/j.ijebo.20170502.14
DO  - 10.11648/j.ijebo.20170502.14
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 67
EP  - 72
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20170502.14
AB  - In the recent past many developing and emerging countries have undertaken a dramatic shift by moving from isolationist, import substitution police to open market policies aimed at increasing foreign direct investment. The main objective of this paper is to investigate if the implementation of China foreign direct investment in Rwanda will have a positive effect in the country. In this paper, we survey some theoretical and empirical literature on the motive and determinant of Chine FDI. Strategic, behavioral and economic consideration appears to the basic motivations for FDIs. In fact the main determinants of FDIs consist of market size variable, labor market conditions, institutional variables, macroeconomic policy variable and global supply of FDIs. This paper states contribution of China FDI’s to economic development of Rwanda and the mainly highlights the tangible benefits that FDI’s produces both in China and Rwanda. Finally we will propose policy suggestion for Rwanda to attract better and utilize FDI’s from China. This paper is no doubt a contribution to the existing literature on FDI and would therefore guide policy reforms on China FDI’s in most developing countries especial in Rwanda.
VL  - 5
IS  - 2
ER  -

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Author Information

HABYARIMANA Jean D’Amour

School of Economic and Management, Faculty of Management Engineering, Chongqing Post and Telecommunication University, China
WU Xiang Feng

School of Economic and Management, Faculty of Management Engineering, Chongqing Post and Telecommunication University, China

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Plain Text BibTeX RIS

APA Style

HABYARIMANA Jean D’Amour, WU Xiang Feng. (2017). Motives and Determinants of China’s Foreign Direct Investment in Rwanda. International Journal of Economic Behavior and Organization, 5(2), 67-72. https://doi.org/10.11648/j.ijebo.20170502.14

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ACS Style

HABYARIMANA Jean D’Amour; WU Xiang Feng. Motives and Determinants of China’s Foreign Direct Investment in Rwanda. Int. J. Econ. Behav. Organ. 2017, 5(2), 67-72. doi: 10.11648/j.ijebo.20170502.14

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AMA Style

HABYARIMANA Jean D’Amour, WU Xiang Feng. Motives and Determinants of China’s Foreign Direct Investment in Rwanda. Int J Econ Behav Organ. 2017;5(2):67-72. doi: 10.11648/j.ijebo.20170502.14

Copy | Download

@article{10.11648/j.ijebo.20170502.14,
  author = {HABYARIMANA Jean D’Amour and WU Xiang Feng},
  title = {Motives and Determinants of China’s Foreign Direct Investment in Rwanda},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {5},
  number = {2},
  pages = {67-72},
  doi = {10.11648/j.ijebo.20170502.14},
  url = {https://doi.org/10.11648/j.ijebo.20170502.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20170502.14},
  abstract = {In the recent past many developing and emerging countries have undertaken a dramatic shift by moving from isolationist, import substitution police to open market policies aimed at increasing foreign direct investment. The main objective of this paper is to investigate if the implementation of China foreign direct investment in Rwanda will have a positive effect in the country. In this paper, we survey some theoretical and empirical literature on the motive and determinant of Chine FDI. Strategic, behavioral and economic consideration appears to the basic motivations for FDIs. In fact the main determinants of FDIs consist of market size variable, labor market conditions, institutional variables, macroeconomic policy variable and global supply of FDIs. This paper states contribution of China FDI’s to economic development of Rwanda and the mainly highlights the tangible benefits that FDI’s produces both in China and Rwanda. Finally we will propose policy suggestion for Rwanda to attract better and utilize FDI’s from China. This paper is no doubt a contribution to the existing literature on FDI and would therefore guide policy reforms on China FDI’s in most developing countries especial in Rwanda.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Motives and Determinants of China’s Foreign Direct Investment in Rwanda
AU  - HABYARIMANA Jean D’Amour
AU  - WU Xiang Feng
Y1  - 2017/04/12
PY  - 2017
N1  - https://doi.org/10.11648/j.ijebo.20170502.14
DO  - 10.11648/j.ijebo.20170502.14
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 67
EP  - 72
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20170502.14
AB  - In the recent past many developing and emerging countries have undertaken a dramatic shift by moving from isolationist, import substitution police to open market policies aimed at increasing foreign direct investment. The main objective of this paper is to investigate if the implementation of China foreign direct investment in Rwanda will have a positive effect in the country. In this paper, we survey some theoretical and empirical literature on the motive and determinant of Chine FDI. Strategic, behavioral and economic consideration appears to the basic motivations for FDIs. In fact the main determinants of FDIs consist of market size variable, labor market conditions, institutional variables, macroeconomic policy variable and global supply of FDIs. This paper states contribution of China FDI’s to economic development of Rwanda and the mainly highlights the tangible benefits that FDI’s produces both in China and Rwanda. Finally we will propose policy suggestion for Rwanda to attract better and utilize FDI’s from China. This paper is no doubt a contribution to the existing literature on FDI and would therefore guide policy reforms on China FDI’s in most developing countries especial in Rwanda.
VL  - 5
IS  - 2
ER  -

Copy | Download