Foreign Direct Investment of China: The Relationship between Chinese Demographic Factors and OFDI When China Steps into Aging Society
Keywords:
Direct Investment, China, Demographic structure, Aging SocietyAbstract
This research aimed to 1) find the relationship between demographic factors and the values of Outward Foreign Direct Investment (OFDI) in China, and 2) study the values of foreign direct investment, types of business, and host countries. This research used both quantitative and qualitative types. The quantitative research applied Pearson Correlation to test the relationship. The data came from a Chinese government source. The qualitative research used documentary research.
The results of the study indicated that factors related in the same direction to the values of Outward Foreign Direct Investment in China were: 1) number of senior populations, 2) average family income, 3) number of urban populations, 4) educational level (bachelor degree), 5) state welfare, and 6) service sector workers. Factors related in the opposite direction to the values of Outward Foreign Direct Investment of China were: 1) number of rural populations and 2) educational level (senior and junior high school). The values of Chinese OFDI during the year 2010-2021 were increased every year. The average per year was US$(billion) 1,307.63. Those types of businesses highly invested were 1) Leasing and business service, 2) Wholesale and Retail Trades, 3) Manufacturing, 4) Financial Intermediation, and 5) Transport, Storage, and Post respectively. Chinese had invested in almost all regions in the world, the highest was the Hong Kong Special Administrative Region, and the next were the British Virgin Islands and Cayman Islands. For Asian, the highest was Singapore, the next were Indonesia and Vietnam respectively.
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