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Evolutionary Trend Of Foreign Investment In China: A Combined Decomposition And Transitional Dynamics Approach

Author

Listed:
  • TSUN SE CHEONG

    (Hang Seng Management College, Shatin, Hong Kong)

  • ANDY W. W. CHENG

    (Hang Seng Management College, Shatin, Hong Kong)

  • VICTOR J. LI

    (#x2020;The Chinese University of Hong Kong, Hong Kong)

Abstract

This paper examines the pattern and evolution trend of foreign investment in China through combining decomposition analysis and framework of transitional dynamics. It is recognized that inter-regional disparity contributes the most to China’s disparity in foreign investment. Stochastic kernel analyses are then performed for the country and the economic zones regarding the foreign investment trend. It is concluded that convergence of foreign investment to the country’s mean cannot be attained and continues to locate at the lower end. This analysis offers illuminating insights on the evolution of foreign investment in China across time.

Suggested Citation

  • Tsun Se Cheong & Andy W. W. Cheng & Victor J. Li, 2019. "Evolutionary Trend Of Foreign Investment In China: A Combined Decomposition And Transitional Dynamics Approach," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(04), pages 1037-1055, September.
    • Handle: RePEc:wsi:serxxx:v:64:y:2019:i:04:n:s0217590817450126
    DOI: 10.1142/S0217590817450126
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