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Determinants of Locations of Foreign Direct Investment in China

Published online by Cambridge University Press:  02 February 2015

Shaomin Li  and
Seung Ho Park
Translated by
李少民
Shaomin Li
Affiliation:
Old Dominion University, USA
Seung Ho Park
Affiliation:
Samsung Economic Research Institute & CEIBS, China
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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

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。

Keywords

外商直接投资区域分布集群效应制度变迁基础设施
Type
Articles
Information
Management and Organization Review , Volume 2 , Issue 1 , March 2006 , pp. 95 - 119
Copyright
Copyright © International Association for Chinese Management Research 2006

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