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The effects of culture and politics on Foreign Direct Investment and sustainable development in China: some research hypotheses

Author

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  • Maktoba Omar
  • Morrison Handley-Schachler

Abstract

China's GDP reached US$ 1.159 trillion in 2001, making it the sixth largest economy in the world. In addition the Chinese government has reformed its economy, liberated market forces and opened up many industries to foreign investors. However, the surge of Foreign Direct Investment in China will have consequences for the natural environment, with a consequent effect on economic sustainability of the economy. It is therefore important to consider the factors which might affect the degree of consideration given to sustainability in investment decisions. This paper suggests some hypotheses, concerning the impact of cultural, political and financial factors on sustainability.

Suggested Citation

  • Maktoba Omar & Morrison Handley-Schachler, 2006. "The effects of culture and politics on Foreign Direct Investment and sustainable development in China: some research hypotheses," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 2(1/2), pages 89-100.
    • Handle: RePEc:ids:wremsd:v:2:y:2006:i:1/2:p:89-100
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