This paper investigates the impact of foreign direct investment (FDI) on the export performance of China at the provincial level. First, it presents a theoretical discussion of the impact of FDI on foreign trade, and then an empirical study of the impact of FDI on the export performance of regions in Chin. It has been found that the impact of FDI on exports differs across three macro-regions in China. The effect is stronger in the coastal region than in the inland regions. Although FDI shows a positive and significant impact on exports from the central region, its impact on the western region is found to be insignificant. Copyright 2001 BlackwellPublishers

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The economic boom and liberalization make China a new focus of international investments by multinational corporations (MNCs). How to enter this huge market and what entry mode should be taken, remain inconclusive. This paper is a study of the entry modes of MNCs into China from socioeconomic perspectives. It provides a theoretical discussion and also an empirical investigation of MNCs’ entry modes in the Chinese particular institutional and business environments. It examines the impact of sociocultural differences, the technology intensity of investment projects and regional factors on MNCs’ entry mode choice.