Determinants of Locations of Foreign Direct Investment in China

By Shaomin Li, Seung-Ho Park. Management and Organization Review, 2006

110 citations recorded by the source corpus.

Abstract This study examines the factors that affect the choice of location for foreign direct investment (FDI) in China. We identify three groups of factors that may affect the location choice by foreign firms: agglomeration economies, infrastructure, and institutional changes resulting from the economic reform. The study utilizes the most recent data from China's industrial census for the empirical testing. The findings show that agglomeration economies, in particular the clustering of foreign firms and domestic firms, exert the strongest effect on FDI location. Higher FDI concentration tends to attract more foreign firms. The clustering of domestic firms exerts a negative effect on FDI locations. Better infrastructure (electricity, telecommunications, and road) and greater institutional change (open policies, privatization, and legal development) also show positive effects on FDI location. The size of the local economy does not seem to affect the choice of location of FDI. 摘要 本文研究了影响外商投资在中国分布的相关因素。作者提出了三类影响外资企业选址的主要因素：群聚效应，基础设施，以及由经济改革引起的制度变迁。通过对最新中国工业普查数据的分析，本文发现群聚经济效应，特别是外资企业与当地企业的集群，对外资企业选址影响最大。较高的外资企业集中率容易吸引更多的外商投资。相反，内资企业群聚对外资的选址有负面影响。较好的基础设施（电力、通讯和交通）和更多的制度变迁（开放政策、私有化和法制发展）亦对外资分布有正面作用。区域经济的规模则对吸引外商投资没有影响。

Subfields: Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/545767811743fa7ba8abcb09e5fedcb7de0d2552

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

  1. Bo Bernhard Nielsen
  2. C. Weatherall
  3. Christian Geisler Asmussen

In Strategy and Management

  1. Bo Bernhard Nielsen
  2. C. Weatherall
  3. Christian Geisler Asmussen
  4. Jean-Paul Roy
  5. Christine Oliver
  6. César Camisón
  7. A. Villar-López

Citations in the corpus