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The effect of the internet on FDI in East and Middle/West China

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  • Minchun Han
  • Jun Niu

Abstract

It is increasingly recognised that the level of internet infrastructure may have significant effect on Foreign Direct Investment (FDI). This paper studies the effect of internet on FDI in East and Middle/West China. Using a gravity model of FDI and data from year 2000 among provinces of different regions in China and main source countries, we found that the internet has statistically significant effect on the volume of FDI in East China, but no significant effect on Middle/West China.

Suggested Citation

  • Minchun Han & Jun Niu, 2010. "The effect of the internet on FDI in East and Middle/West China," International Journal of Networking and Virtual Organisations, Inderscience Enterprises Ltd, vol. 7(4), pages 297-307.
    • Handle: RePEc:ids:ijnvor:v:7:y:2010:i:4:p:297-307
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