Dan O’Neill Goes All Tom Cruise in Seattle
University of the Pacific Political Science and International Studies Professor Daniel O’Neill also participated in the recent Seattle meetings of the American Political Science Association. He delivered a paper “Risky Business: China‘s Foreign Direct Investment and Aid to Developing Countries.”
Here’s the abstract for the paper:
Foreign direct investment (FDI) from China is increasingly destined for developing states with high corruption, weak rule of law and substantial political risk. To explain the ability of China’s state owned enterprises (SOEs) to invest successfully in such environments, I present a theory of how Chinese bilateral policies, particularly foreign aid, shape incentives for the leadership in the receiving country that constrain predatory behavior against Chinese SOEs. This creates a de facto insurance for Chinese investors in foreign states lacking the institutions shown to protect investments. Case studies of Chinese SOEs in Cambodia and Kazakhstan support the hypotheses. A main contribution of this study is in analyzing the effects of the policies of home (FDI source) country governments on outward foreign direct investment.
- Growth in foreign investment in China slows (seattletimes.nwsource.com)