This research paper investigates the theoretical systems of Outward Foreign Direct Investment (OFDI) location determinants, focusing on the differences between Global North and Global South economies. Using a Vector Error Correction Model (VECM) and panel data from 172 countries (2005-2019), the study compares China and the United States' OFDI, revealing significant differences. China's OFDI is driven by factors like energy, logistics infrastructure, and political considerations, while the US's OFDI is primarily market-oriented and economically driven. The study contributes by highlighting these differences and offering policy advice for both Global North and South.

Yanfeng Liu, Xue Li, Xiaonan Zhu, Min-Kyu Lee, Po-Lin Lai