| Content | Using a unique firm-level data from the World Bank Survey on Chinese outbound directinvestment conducted in Ethiopia in 2012, this study examines the determinants and location decisionsof private Chinese investment in Ethiopia. Principal components factor analysis shows that (i) Chinesefirms invest in Ethiopia to take advantage of their ownership advantages, (ii) market access motives are
influential in investment location decision-making and (iii) host government incentive packages towards inward foreign direct investment affect their location decisions, albeit less influential than other factors.These results remain robust when we controlled for two separate clusters of Chinese firms. |
