But there is also evidence that developing countries usually invest heavily in other developing countries (UNCTAD 2006), one of the reasons being that products made by developing firms are more likely to suit the tastes and needs of consumers in countries with similar levels of economic development. A higher per capita GDP indeed suggests a higher purchasing power. Given other conditions, market-seeking ODI should positively respond to the host country's GDP and GDPG. This is quite small compared with average investment of $339 million for the NDRC dataset. There are 1,270 projects in the dataset, totaling investment of $1.75 billion or $1.4 million per project on average. They are representative of investment by the PRC's private sector and small-sized and medium-sized enterprises (SMEs). The second dataset is provided by the Foreign Trade and Economic Cooperation Bureau (FTECB) of Zhejiang Province and covers all the registered ODI from that province from 2006 to 2008. Most of the projects are large in terms of investment and involve known Chinese firms. ![]() This includes 293 investment projects with total investment of $99.43 billion made by 216 firms between 2003 and the first half of 2011. The first dataset, collected by the authors, consists of approved ODI projects from the National Development and Reform Commission (NDRC). In this paper, we apply statistical approaches to identify the main motivations of Chinese ODI by using two sets of enterprise data.
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