Foreign Direct Investments and Gross Domestic Product Development in USA, European Union and China (1995-2014)

Year 2016, Volume: 6 Issue: 3, 978 - 984, 01.05.2016

Daryoush Soleimani Mansoor Maitah Karel Malec Sylvie Kobzev Kotásková

Abstract

European Union (EU) and China established diplomatic relations in 1975, and now became mutually indispensable economic partners, presenting
both an opportunity and challenge. During that time, after the first market reforms which were introduced in 1978, China has transitioned from a
predominantly agricultural to industrial and service-oriented economy. On 11 December 2001, China also became the 143rd member of the World
Trade Organization. The aim of this research is to quantitatively compare the US, EU and Chinese gross domestic product from 1995 to 2014, the US
and Chinese outward Foreign direct investments (FDI) from 1995 to 2013, and analyse the impact of the exponentially rising Chinese investments in
the EU. We have found that while the US economy experienced a regression in general, and exhibited outward FDI exponential decrease in particular,
the Chinese outward FDI sustained an exponential growth. There is also possible to expect continue of exponentially rising economic investment
of China in the EU. The Chinese investment in the EU is estimated to peak during the next decade, when China will become by far the foremost
economic partner of the EU.

Keywords

China, European Union, United States GDP, Foreign Direct Investment