• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Quaterly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Managing Editor: Ms. Inez. Chan

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HOME > Archive > 2024 > Volume 15 Number 2 (2024) >
IJTEF 2024 Vol.15(2): 61-68
DOI: 10.18178/ijtef.2024.15.2.771

Study on Economic Risks of Chinese Outward Foreign Direct Investment in Countries along the “Belt and Road”

Sukun Pan and Huimin Zhang
School of Economics and Management, North China University of Technology, Beijing, China
Email: pansukun@163.com (S.K.P.); 3159127014@qq.com (H.M.Z.)
*Corresponding author

Manuscript received August 21, 2023; revised September 15, 2023; accepted October 14, 2023; published May 10, 2024.

Abstract—With the promotion of the “Belt and Road” initiative, China’s outward foreign direct investment in countries along the “Belt and Road” has kept on increasing. However, most countries along the “Belt and Road” are developing countries and transitional economies, Chinese enterprises investing in countries along the “Belt and Road” confront with economic risks. It is imperative to evaluate economic risks of OFDI effectively and take efficient measures to control the risk. This paper analyzes the influencing factors of economic risk of OFDI, and evaluates the economic risks of Chinese OFDI in countries along the “Belt and Road” with the method of entropy weight. According to the research results, Estonia, Singapore, and Indonesia emerge as countries with the lowest level of economic risk of OFDI for Chinese enterprises. Conversely, Saudi Arabia, Jordan, and Lebanon are countries with the highest level of economic risks of OFDI. In order to improve the quality of Chinese OFDI in countries along the “Belt and Road”, our government should play an active role in providing comprehensive information on investment environment. Furthermore, Chinese enterprises should evaluate economic risks of OFDI in countries along the “Belt and Road” in advance, and reasonably select destination countries of OFDI. 


Keywords—Belt and Road, Outward Foreign Direct Investment (OFDI), economic risks


Cite: Sukun Pan and Huimin Zhang, "Study on Economic Risks of Chinese Outward Foreign Direct Investment in Countries along the “Belt and Road”," International Journal of Trade, Economics and Finance vol.15, no.2, pp. 61-68, 2024.


Copyright © 2024 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).







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