The Determinants of Foreign Direct Investment (FDI): the Case of the Chinese Provinces during the Economic Transition
Foreign Direct Investment (FDI) is considered a relevant factor of Chinese economic growth particularly for the coastal region. The aim of this paper is to understand what determined the location of FDI in China during the economic transition from the early 1980’s up to the Asian crisis. In order to examine which factors affected the amount of FDI received by the provinces an empirical analysis based is carried out. The estimates are obtained through a panel analysis utilising a panel data set at provincial level. The empirical findings emphasise that in addition to factors usually considered in the literature -such as market access, market profitability, strategic location, production costs, factor endowments, agglomeration effect, policy promotion, political stability, etc. …- a higher FDI inflow is determined also by the level of institutional changes towards marketisation.
|Date of creation:||Nov 2012|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.cmet05.it|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mohsin S. Khan & Zuliu Hu, 1996.
"Why is China Growing so Fast?,"
IMF Working Papers
96/75, International Monetary Fund.
- Jeffrey D. Sachs & Wing Thye Woo, 1997.
"Understanding China's Economic Performance,"
NBER Working Papers
5935, National Bureau of Economic Research, Inc.
- Jeffrey D. Sachs & Wing Thye Woo, . "Understanding China'S Economic Performance," Department of Economics 97-04, California Davis - Department of Economics.
- Jeffrey D. Sachs & Wing Thye Woo, 1997. "Understanding China's Economic Performance," Harvard Institute of Economic Research Working Papers 1793, Harvard - Institute of Economic Research.
- Gastanaga, Victor M. & Nugent, Jeffrey B. & Pashamova, Bistra, 1998. "Host Country Reforms and FDI Inflows: How Much Difference do they Make?," World Development, Elsevier, vol. 26(7), pages 1299-1314, July.
- Cheng, Leonard K. & Kwan, Yum K., 2000. "What are the determinants of the location of foreign direct investment? The Chinese experience," Journal of International Economics, Elsevier, vol. 51(2), pages 379-400, August.
- Yuanzheng Cao & Yingyi Qian & Barry R. Weingast, 1999.
"From federalism, Chinese style to privatization, Chinese style,"
The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 7(1), pages 103-131, March.
- Yuanzheng Cao & Yingyi Qian & Barry R. Weingast, 1997. "From Federalism, Chinese Style, to Privatization, Chinese Style," Working Papers 97049, Stanford University, Department of Economics.
- Yuanzheng Cao & Yingyi Qian & Barry R. Weingast, 1997. "From Federalism, Chinese Style to Privatization, Chinese style," William Davidson Institute Working Papers Series 126, William Davidson Institute at the University of Michigan.
- Cao Yuanzheng, & Qian, Yingyi & Weingast, Barry, 1998. "From Federalism, Chinese Style, to Privatization, Chinese Style," CEPR Discussion Papers 1838, C.E.P.R. Discussion Papers.
- Luiz de Mello, 1997. "Foreign direct investment in developing countries and growth: A selective survey," Journal of Development Studies, Taylor & Francis Journals, vol. 34(1), pages 1-34.
- Chien-Hsun Chen, 1996. "Regional determinants of foreign direct investment in mainland China," Journal of Economic Studies, Emerald Group Publishing, vol. 23(2), pages 18-30, May.
- Martin Raiser, 1998. "Subsidising inequality: Economic reforms, fiscal transfers and convergence across Chinese provinces," Journal of Development Studies, Taylor & Francis Journals, vol. 34(3), pages 1-26.
- Chow, Gregory C, 1993.
"Capital Formation and Economic Growth in China,"
The Quarterly Journal of Economics,
MIT Press, vol. 108(3), pages 809-42, August.
- Fleisher, Belton M. & Chen, Jian, 1997. "The Coast-Noncoast Income Gap, Productivity, and Regional Economic Policy in China," Journal of Comparative Economics, Elsevier, vol. 25(2), pages 220-236, October.
- Chen, Jian & Fleisher, Belton M., 1996. "Regional Income Inequality and Economic Growth in China," Journal of Comparative Economics, Elsevier, vol. 22(2), pages 141-164, April.
- Helleiner, G.K., 1989. "Transnational corporations and direct foreign investment," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 2, chapter 27, pages 1441-1480 Elsevier.
- Fuss, Melvyn & McFadden, Daniel & Mundlak, Yair, 1978. "A Survey of Functional Forms in the Economic Analysis of Production," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.), Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 4 McMaster University Archive for the History of Economic Thought.
When requesting a correction, please mention this item's handle: RePEc:cme:wpaper:1211. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Donato Iacobucci)
If references are entirely missing, you can add them using this form.