Analysis of China�s Outward Fdi in Latin America and the Caribbean Countries

This is the authors' abstract. We don't add key points for this paper.

Nowadays, China is one of the largest economies in the world, due to economic reforms undertaken during the past decades, managing to expand its economy to a global market, strengthening its trade relations with foreign powers, and gradually investing in developing markets including Latin America and Caribbean region. This research analyzes the influence of trade patterns and market size from 2006 to 2014, to identify indicators of the purpose for Chinese Foreign Direct Investment (FDI) into Latin America and the Caribbean countries. This paper intends to determine the advantages for (LAC) region to attract Chinese investors and how could these countries benefit from it? The distance between LAC countries and China and finally the level of trade significance to China's FDI? Making use of Gravity Model, this study takes into consideration data from 27 LAC countries and China to examine the significance of Chinese investment in Latin America. Findings show that exports, government expenditure, and internet are positively significant to attract FDI to Latin America. Meanwhile, imports, and GDP per capita negatively affect Investment from China into the region. Keywords Caribbean, China, Foreign Direct Investment, Gravity model, Latin America, Trade.