Chinese Foreign Direct Investment Research Paper

Chinese Foreign Direct Investment - Research Paper Example This study examines Chinese investments in Zambia as foreign aid to the country. The general objective of the paper will be to find out whether Chinese foreign direct investments could lead to the long-term economic growth of Zambia. The paper seeks to fulfill these specific objectives:  This study examines Chinese investments in Zambia as foreign aid to the country. The general objective of the paper will be to find out whether Chinese foreign direct investments could lead to the long-term economic growth of Zambia. The paper seeks to fulfill these specific objectives:  1) To find out the extent of Chinese foreign direct investments in the Zambian Mines2) To establish the impact of the Chinese foreign direct investments on the performance of mining firms in Zambia.3) To investigate the effects of the mining firms on the economic growth of Zambia both in the short-term and long-term.Study questions based on the above objectives, this research will seek to answer these research qu estions regarding the foreign direct investment of China in Zambian Mining firms.  1) What is the extent of the Chinese Foreign direct investments in Zambian mining firms?2) What is the impact of the Chinese foreign direct investment on the performance of the Mining firms in Zambia?3) What is the existing relationship between Chinese foreign direct investments with short and long-term economic growth of Zambia?Study HypothesisThe Zambian economy is a small open economy that depends on the inflows of the foreign direct investments from China and export of the mining products from its economy. Therefore, this study seeks to fulfill the hypothesis that the Zambian economic growth is positively related to the FDI from China and increased export of Zambian mining products. Literature Review Financial Crisis and Chinese Economy The business environment experiences cycles that occur in different periods. Some of the cycles include the boom, recession, depression and lastly growth. As noted by Gruen, a recession is a cycle that occurs immediately after a boom. It