Andrius Bambalas


International investment law scholars do not provide sufficient analysis of underlying process of investment (capital flows). As China has become the second biggest economy in the world and the third biggest investor in the world that channels outward investments mainly through state owned enterprises the question about the underlying reasons of such investments remain. To address this issue the author reviews the historic periods of capital flows and current trends; examines the theoretical framework of and reasons for foreign investment from state as well private (as against state agent) investor’s perspective and assesses the underlying reasons of China’s capital export policies.