The paper "What Determines Chinese Outward FDI?" by Ivar Kolstad and Arne Wiig explores the factors influencing Chinese outward foreign direct investment (FDI). The authors use a comprehensive dataset covering 142 host countries from 2003 to 2006 to analyze the determinants of Chinese FDI. They find that Chinese FDI is significantly attracted to countries with large markets and natural resources, particularly in the form of petroleum. However, the impact of these factors is moderated by the institutional environment of the host country. Specifically, Chinese FDI is more attracted to countries with poor institutions and abundant natural resources. The study also highlights the importance of the interaction between institutions and natural resources, suggesting that the worse the institutions, the more Chinese FDI is attracted to countries with natural resources. The findings suggest that Chinese FDI may be driven by the exploitation of poor institutions and natural resources, which could have significant implications for host economies, especially in developing countries.The paper "What Determines Chinese Outward FDI?" by Ivar Kolstad and Arne Wiig explores the factors influencing Chinese outward foreign direct investment (FDI). The authors use a comprehensive dataset covering 142 host countries from 2003 to 2006 to analyze the determinants of Chinese FDI. They find that Chinese FDI is significantly attracted to countries with large markets and natural resources, particularly in the form of petroleum. However, the impact of these factors is moderated by the institutional environment of the host country. Specifically, Chinese FDI is more attracted to countries with poor institutions and abundant natural resources. The study also highlights the importance of the interaction between institutions and natural resources, suggesting that the worse the institutions, the more Chinese FDI is attracted to countries with natural resources. The findings suggest that Chinese FDI may be driven by the exploitation of poor institutions and natural resources, which could have significant implications for host economies, especially in developing countries.