Has Chinese outward foreign direct investment in energy enhanced China's energy security?

Zhao, Y; Shi, X; Song, F

Has Chinese outward foreign direct investment in energy enhanced China's energy security?

Zhao, Y Shi, X

Song, F

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Publisher:: Elsevier BV
Publication Type:: Journal Article
Citation:: Energy Policy, 2020, 146, pp. 111803-111803
Issue Date:: 2020-11-01

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Field	Value	Language
dc.contributor.author	Zhao, Y
dc.contributor.author	Shi, X https://orcid.org/0000-0001-9653-7395
dc.contributor.author	Song, F
dc.date.accessioned	2020-09-22T05:11:55Z
dc.date.available	2020-09-22T05:11:55Z
dc.date.issued	2020-11-01
dc.identifier.citation	Energy Policy, 2020, 146, pp. 111803-111803
dc.identifier.issn	0301-4215
dc.identifier.uri	http://hdl.handle.net/10453/142795
dc.description.abstract	© 2020 Elsevier Ltd China's soaring outward foreign direct investment (OFDI) in the energy sector has attracted increasing attention, which is arguably intended to enhance China's energy security given its large oil deficit. This study attempts to empirically examine whether OFDI in the energy sector can help to enhance China's energy security by conducting an econometric analysis using a micro-level dataset. The results show that China's OFDI in energy does enhance its energy security by increasing the volume of oil imports from host countries for the investment and by diversifying China's sources of imports. On average, a 1% increase in energy OFDI to a country leads to a 1.2% increase in the probability of importing from that country and a 0.071% increase in the firm-level import volume. In addition, we find that the effects do not differ by investment mode (i.e. mergers and acquisitions or greenfield investments) but do differ by country type, as investments in developing countries can positively contribute to oil imports, whereas investments in developed countries do not have the same effect.
dc.language	en
dc.publisher	Elsevier BV
dc.relation.ispartof	Energy Policy
dc.relation.isbasedon	10.1016/j.enpol.2020.111803
dc.rights	info:eu-repo/semantics/embargoedAccess
dc.subject.classification	Energy
dc.title	Has Chinese outward foreign direct investment in energy enhanced China's energy security?
dc.type	Journal Article
utslib.citation.volume	146
pubs.organisational-group	/University of Technology Sydney/DVC (International)
pubs.organisational-group	/University of Technology Sydney/DVC (International)/Australia-China Relations Institute
pubs.organisational-group	/University of Technology Sydney
utslib.copyright.status	open_access	*
utslib.copyright.embargo	2022-11-03T00:00:00+1000Z
dc.date.updated	2020-09-22T05:11:50Z
pubs.publication-status	Accepted
pubs.volume	146

Abstract:

© 2020 Elsevier Ltd China's soaring outward foreign direct investment (OFDI) in the energy sector has attracted increasing attention, which is arguably intended to enhance China's energy security given its large oil deficit. This study attempts to empirically examine whether OFDI in the energy sector can help to enhance China's energy security by conducting an econometric analysis using a micro-level dataset. The results show that China's OFDI in energy does enhance its energy security by increasing the volume of oil imports from host countries for the investment and by diversifying China's sources of imports. On average, a 1% increase in energy OFDI to a country leads to a 1.2% increase in the probability of importing from that country and a 0.071% increase in the firm-level import volume. In addition, we find that the effects do not differ by investment mode (i.e. mergers and acquisitions or greenfield investments) but do differ by country type, as investments in developing countries can positively contribute to oil imports, whereas investments in developed countries do not have the same effect.

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http://hdl.handle.net/10453/142795