AbstractsBusiness Management & Administration

Chinese FDI in Europe in the Wake of the Sovereign Debt Crisis

by Selina Wambutsi




Institution: Roskilde University
Department:
Year: 2015
Keywords: Chinese FDI; Greece; privatization; sovereign debt crisis
Record ID: 1120676
Full text PDF: http://rudar.ruc.dk/handle/1800/17921


Abstract

This paper examines how Chinese FDI in Europe has responded to the privatization of public assets in the wake of the sovereign debt crisis. The push and pull framework is used to analyze the driving forces behind Chinese FDI in Europe. The analysis has pointed out that Chinese FDI has increased in the whole of Europe and in sovereign debt crisis countries in the period after the crisis. By using the case of Greece, the paper analyses how Chinese investments have responded to privatization in the wake of the sovereign debt crisis. The analysis has indicated that Chinese FDI has increased in Greece following the privatization of state owned enterprises after the sovereign debt crisis. The analysis of the paper has established that privatization is a facilitating factor rather than a driving force for Chinese FDI in Greece in the wake of the sovereign debt crisis. Other driving forces behind Chinese investments in Greece are also pointed out in this paper as: 1. the opportunity to access markets; and 2. attractive Greece government policies in form of incentives