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Recent Developments In Foreign Direct Investment In China

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Author Info
Chen Chunlai

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Abstract

Since 1993 China has become the second largest FDI recipient in the world and the single largest host country among the developing countries. This paper finds that the regional distribution of FDI inflows into China has been very uneven and mainly concentrated in the East region. Among the economic sectors, industry and real estate sectors are the major FDI recipients. FDI inflows into China are mainly concentrated in labour intensive manufacturing industries, which reveals that taking advantage of China’s cheap labour is the main motive for foreign investors in China. FDI inflows into China have been dominated by NIEs, especially by Hong Kong. This paper discusses several factors for the domination of NIEs’ investments in China and reviews the recent policy and regulation changes towards FDI.

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Paper provided by Chinese Economies Research Centre in its series Working Papers with number 96_3.

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Handle: RePEc:wop:cercwp:96_3

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  1. Chao Yang Peng, . "Challenges To China'S Energy Security," Working Papers 96_8, Chinese Economies Research Centre.
  2. Stèphane Dees, 1998. "Foreign Direct Investment in China: Determinants and Effects," Economic Change and Restructuring, Springer, vol. 31(2), pages 175-194, May. [Downloadable!] (restricted)
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  3. Jianhong Zhang, 2005. "An explanatory study of bilateral FDI relations: The case of China," Journal of Chinese Economic and Business Studies, Taylor and Francis Journals, vol. 3(2), pages 133-150, May. [Downloadable!] (restricted)
  4. Cletus C. Coughlin & Eran Segev, 1999. "Foreign direct investment in China: a spatial econometric study," Working Papers 1999-001, Federal Reserve Bank of St. Louis. [Downloadable!]
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This page was last updated on 2009-12-2.

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