Provincial Characteristics and Foreign Direct Investment Location Decision within China
Using panel data, a multiple regression model of the location decision of foreign direct investment (FDI) in China is developed and estimated. The results for the period of 1987-94 of China's 29 provinces indicate that provinces with higher GDP, higher per capita income, higher level of accumulated FDI stock, and more intensive transport infrastructure attracted relatively more FDI inflows, while higher efficiency wages deterred FDI inflows. In addition, the regional differentiation in the timing of implementing the open policies for FDI had a strong impact on the provincial distribution of FDI inflows. Finally the implementation of a series of policy measures in the early 1990s had a very strong positive effect on attracting FDI inflows into China across all provinces.
|Date of creation:||1997|
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