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Why FDI does not Flow into Western China: an Industrial Perspective


  • Xianming Yang

    () (School of Development Studies, Yunnan University, China)

  • Fan Yuan


The relative difficulty of attracting foreign direct investment (FDI) to western China is often attributed to geography. However, this explanation becomes less tenable as the gap between FDI stocks in western and eastern China increases. This paper attempts to explain the situation from an industrial perspective by exploring the differences between the two regions. It also analyzes the effects of industrial development, structure, and linking capability. The results reveal that industrial factors are important to the inflow of FDI to western China.

Suggested Citation

  • Xianming Yang & Fan Yuan, 2009. "Why FDI does not Flow into Western China: an Industrial Perspective," Transnational Corporations Review, Ottawa United Learning Academy, vol. 1(2), pages 38-58, June.
  • Handle: RePEc:oul:tncr09:v:1:y:2009:i:2:p:38-58

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