What Explains the Boom of Foreign Direct Investment in China?
AbstractThis study first provides several extraordinary characteristics of the boom of foreign direct investment (FDI) fiows into China. These include the massive predominance of investment from Asian developing economies, especially Hong Kong, and the different sectoral and geographical distributions of FDI from developing Asia and developed Western countries. Based on these facts and the relevant theoretical considerations, a relative-demand model is specified and estimated with time series data. The model (a) formulates China’s location advantages relative to other developing countries, and (b) distinguishes between Asian and Western FDI. The estimates indicate that China’s large market size, liberalized FDI policies, and political stability are attractive to both types of FDI. While Asian investors seem to be motivated largely by China’s cheap labor, Western FDI is more likely to appear for local market penetration when China’s infrastructure and human capital conditions are improved and when trade barriers are large.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Camera di Commercio di Genova in its journal Economia Internazionale / International Economics.
Volume (Year): 54 (2001)
Issue (Month): 2 ()
Contact details of provider:
Postal: Via Garibaldi 4, 16124 Genova, Italy
Phone: +39 010 27041
Fax: +39 010 2704222
Web page: http://www.ge.camcom.it/IT/Tool/Modulistica
More information through EDIRC
Vertical and Horizontal Foreign Direct Investment; Location Advantages;
Find related papers by JEL classification:
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Steven Globerman & Daniel Shapiro, 2003.
"Governance infrastructure and US foreign direct investment,"
Journal of International Business Studies,
Palgrave Macmillan, vol. 34(1), pages 19-39, January.
- Steven Globerman & Daniel Shapiro, 2004. "Governance Infrastructure and U.S. Foreign Direct Investment," International Finance 0404008, EconWPA.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angela Procopio).
If references are entirely missing, you can add them using this form.