What Attracts Foreign Multinational Corporations To China?
AbstractAfter adopting the open-door policy, China experienced a boom of inward foreign direct investment (FDI) by multinational corporations. This article attempts to assess effects of location characteristics and government policies on FDI flows during the period 1987-98. A model of FDI determinants is specified and estimated with cross-section and panel data. The estimates indicate that China's huge market size, liberalized FDI regime, and improving infrastructure are attractive to multinationals. The regional distribution of FDI within China is influenced largely by FDI incentives and historical-cultural links with foreign investors, along with other location factors. Copyright 2001 Western Economic Association International.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Western Economic Association International in its journal Contemporary Economic Policy.
Volume (Year): 19 (2001)
Issue (Month): 3 (07)
Contact details of provider:
Postal: 18830 Brookhurst Street, Suite 304, Fountain Valley, CA 92708 USA
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1074-3529
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Fetscherin, Marc & Voss, Hinrich & Gugler, Philippe, 2010. "30 Years of foreign direct investment to China: An interdisciplinary literature review," International Business Review, Elsevier, vol. 19(3), pages 235-246, June.
- Chen, George Shih-Ku, 2009. "Agglomeration economies and the location of Taiwanese investment in China," MPRA Paper 13896, University Library of Munich, Germany.
- Yuqing Xing & Laixun Zhao, 2003.
"Reverse Imports, Foreign Direct Investment and Exchange Rates,"
EMS_2003_03, Research Institute, International University of Japan.
- Xing, Yuqing & Zhao, Laixun, 2008. "Reverse imports, foreign direct investment and exchange rates," Japan and the World Economy, Elsevier, vol. 20(2), pages 275-289, March.
- Lim, Sung-Hoon, 2008. "How investment promotion affects attracting foreign direct investment: Analytical argument and empirical analyses," International Business Review, Elsevier, vol. 17(1), pages 39-53, February.
- Lim, Sung-Hoon, 2005. "Foreign investment impact and incentive: a strategic approach to the relationship between the objectives of foreign investment policy and their promotion," International Business Review, Elsevier, vol. 14(1), pages 61-76, February.
- Miguel D. Ramirez, 2002. "Foreign Direct Investment in Mexico during the 1990s: An Empirical Assessment," Eastern Economic Journal, Eastern Economic Association, vol. 28(3), pages 409-423, Summer.
- George Shih-Ku Chen, 2009.
"Determinants Of Taiwanese Investment In China: An Agglomeration Economies-Based Perspective,"
Development Research Unit Working Paper Series
01-09, Monash University, Department of Economics.
- Chen, George Shih-Ku, 2009. "Determinants of Taiwanese investment in China: An agglomeration economies-based perspective," MPRA Paper 13894, University Library of Munich, Germany.
- Park, Innwon & Park, Soonchan, 2010. "Modes of foreign direct investment and patterns of trade: Why do multinational enterprises come To China?," MPRA Paper 26679, University Library of Munich, Germany.
- Hong, Junjie & CHIN, Anthony T.H., 2007. "Modeling the location choices of foreign investments in Chinese logistics industry," China Economic Review, Elsevier, vol. 18(4), pages 425-437.
- Yuqing Xing, 2004.
"Why is China so Attractive for FDI The Role of Exchange Rates,"
EMS_2004_04, Research Institute, International University of Japan.
- XING, Yuqing, 2006. "Why is China so attractive for FDI? The role of exchange rates," China Economic Review, Elsevier, vol. 17(2), pages 198-209.
- John Anyanwu, 2011. "Working Paper 136 - Determinants of Foreign Direct Investment Inflows to Africa, 1980-2007," Working Paper Series 327, African Development Bank.
- Deepak Sethi & William Judge & Qian Sun, 2011. "FDI distribution within China: An integrative conceptual framework for analyzing intra-country FDI variations," Asia Pacific Journal of Management, Springer, vol. 28(2), pages 325-352, June.
- Hong, Junjie, 2007. "Transport and the location of foreign logistics firms: The Chinese experience," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(6), pages 597-609, July.
- John C. Anyanwu, 2012. "Why Does Foreign Direct Investment Go Where It Goes?: New Evidence From African Countries," Annals of Economics and Finance, Society for AEF, vol. 13(2), pages 425-462, November.
- Xing, Yuqing & Wan, Guanghua, 2004. "Exchange Rates and Competition for FDI," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.