Paper short abstract:

We investigate the influence of China-Nigeria bilateral relationship on determinants of resources seeking Chinese MNEs FDI in Nigeria. Institutional and country’s specific factors make the FDI determinants different from other countries and give Chinese MNEs control over the resources.

Paper long abstract:

Availability and access to resources, supporting infrastructures and good government policies in a politically stable environment are importance factors to any resources seeking MNEs FDI. Also, the measures of risk in a market place determine attractiveness of a location as investment destination. The resources seeking Chinese MNEs recognize that these conventional factors are not available in Nigeria and most of African countries. Since the FDI decision of Chinese MNEs reflects political objectives of Chinese government that are not consistent with profit maximizing-strategies of private organizations. Therefore, China-Nigeria bilateral relationship umbrella under which the two countries cooperate on trades and investments provides opportunity to Chinese government to realize their objectives through their firms. The importance of institutional factors and country's specific factors are explored to internalize their firm's ownership advantages. The bilateral trade and investment relations create the platform for Chinese firm to form partnership with local resources regulators and stakeholders

In this present research, we match theoretical and empirical evidences together to analyze the influence China-Nigeria bilateral relationship on four location specific attributes specifically for resources seeking Chinese MNEs. The implications of this relationship are two folds. The combination of institutional factors and country's specific advantages make the FDI determinants different from other countries. Also, the partnership of Chinese MNEs with regulators of local resources gives them control and autonomy to use the resources.