2006
DOI: 10.1080/14631370500505131
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Regional Decentralisation and Location of Foreign Direct Investment in China

Abstract: China's economic transition is essentially a two-pronged decentralisation process: power and fiscal decentralisation from central to local government and shift of decision making from governments to firms and households. Using FDI flow data at the provincial level from 1995 to 2002, this study finds that provinces with more authority in economic matters and hardening fiscal budget constraints have a larger FDI inflow. Market decentralisation may significantly improve the investment environment and attract fore… Show more

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Cited by 42 publications
(20 citation statements)
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“…However, more legal spending in a province brings lesser FDI inflow. The economic and political reforms of transitional economies bring FDI inflows [9].…”
Section: Do Sezsmentioning
confidence: 99%
See 2 more Smart Citations
“…However, more legal spending in a province brings lesser FDI inflow. The economic and political reforms of transitional economies bring FDI inflows [9].…”
Section: Do Sezsmentioning
confidence: 99%
“…Based on the panel data analysis, Canfei [9] found that a province with more authority in economic matters and strict fiscal budget constraint attracts more FDI inflows. However, more legal spending in a province brings lesser FDI inflow.…”
Section: Do Sezsmentioning
confidence: 99%
See 1 more Smart Citation
“…Canfei (2006) also divided the China region into four regions, although these regions remained unnamed. After considering past studies, and considering that the sample companies lacked subsidiaries in the Western China region (for example, Xinjiang, Xizang, Qinghai, Ningxia, Gansu, Yunnan, and Guizhou Province) during the 1999 to 2007 research period, researchers felt that the Western region had little categorical significance.…”
Section: Foreign Investment Locationmentioning
confidence: 99%
“…As described earlier, in dividing China into four general regions for this research, this study considered the work of He et al (2008), Kang and Liao (2006), and Canfei (2006), and then considered the measurement methods of breadth and depth developed by Allen and Pantzalis (1996). Afterward, a "region" was established as the basis for calculating the breadth of foreign investment.…”
Section: The Breadth Of Foreign Investment (Bd)mentioning
confidence: 99%