Analytical study on Foreign Direct Investment Divestment Inflows and Outflows in Developing Economies: Evidence of China

Abstract

Multilateral organizations are taking attention toward foreign divestment; they are in practice to shift toward a large number of host countries from their home countries. In this paper, the significant role of FDI divestment in the development of the economy has been discussed. The role and contribution of FDI divestment in emerging economies have been discussed. The study employs qualitative descriptive analysis to address the determinants of FDI divestment operated by the emerging economies specifically in China. The study is based on economic reports, official documents, and data directly related to the subject of the study. The role and contribution of FDI divestment to develop a strong corporate sector are elaborated in this paper. Furthermore, the role of FDI divestment in reforming organizations and their sustainable growth with the support of evidence has been discussed. Issues regarding FDI divestment faced by different stakeholders have been explained in this research. Inflows and outflows of FDI divestment with cause and effect have been discussed in this paper. Additionally, this study examined the role of multilateral organizations to convince emerging economies by improving their divestment approach. In global strategy formulation FDI divestment consider as a significant aspect. It is observed, that this aspect of the strategy is still untouched in the field of international business and business academies. This study is specifically in the context of China with under consideration of other developed economies. This study investigates the encouraging factors for growing economies to formulate their divestment policies.

Keywords:

• Cause and effect of divestment
• divestment
• divestment policy
• developing economies
• emerging trends of divestment

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Mohamad Zreik

Mohamad Zreik holds a PhD in international relations. He is an independent researcher. His areas of research interests are related to the Foreign Policy of China, Belt and Road Initiative, Middle Eastern Studies, China-Arab relations, East Asian Affairs, Asian Affairs, Geopolitics of Eurasia, and Political Economy.