The Role of Macroeconomic Variables in the Process of FDI Outflows from China

The thesis examines the strengthening dynamics of outward foreign direct investment (OFDI) from China. Its aim was to evaluate whether, and to what extent, selected macroeconomic variables influence Chinese OFDI (COFDI) from the perspective of foreign firms. The analysis identified unit labor costs, the broadly defined real effective exchange rate (REER), and the yield differential with India as the most relevant explanatory variables. This approach extends existing research, which has primarily focused on indicators such as GDP, total FDI, or export volumes. The research objective was achieved through a combination of fundamental analysis in the practical section and subsequent verification using an ARDL model. COFDI was modeled in absolute terms, with the Bounds test confirming a long-term positive relationship between the selected variables. However, the error correction model indicated that, in the short term, a positive relationship with COFDI persisted only in the case of REER.