Macro Mechanisms in the Promotion of Chinese Outward Direct Foreign Investment

By : Qing Yang , Badar Alam Iqbal

Page No: 374-382

Abstract
This paper analyzes in detail relevant mechanisms that influence the development of Chinese Outward Foreign Investment (OFDI). Since these mechanisms directly affect the development of Chinese transnational corporations, it is of great significance to establish and improve such mechanisms. The mechanisms relating to the development of OFDI mainly include: foreign exchange administration, legal systems, the system of administrative examination and approval, monetary support system, tax system, insurance system and related service support system. After analyzing their current situations in China and the influences they have on the development of OFDI, the paper points out existing problems, discusses the problems’ after effects and illustrates the roles of the relevant mechanisms. In addition, the paper examines the practices and experiences of other countries in this field and presents suggestions and ideas about how to establish and improve the mechanisms in the growth of Chinese transnational corporations.

Authors :
Qing Yang : School of Economics and Management, South China Normal University, Guangzhou City, Guangdong, China.
Badar Alam Iqbal : Visiting Professor, Department of Marketing and International Business, Makerere University Business School, Uganda