Abstract This paper aims at the motivation for services of the overseas investment of Chinese companies investing overseas, and studies the factors influencing the service seeking OFDI from China. For this purpose, data of OFDI from China to 40 economies from 2003-2009 is examined based on the panel-data model in this paper. We conclude that, the overseas investment behavior of Chinese companies expects a motive of getting producer services. Significantly, the investment of China’s enterprises is attracted by the high technology content of producer service industries of host countries. Furthermore, there is substitution relationship between service seeking OFDI and inflow FDI in producer service industries. Inflow FDI in producer service industries is restricted by home country’s strict capital and investment control. Meanwhile, the companies have to get producer services of high technology level from host countries by the way of OFDI.
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Received: 28 January 2014
Published: 15 May 2014
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Corresponding Authors:
ZHOU Xin
E-mail: zhouxin0110@163.com
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