The determinants of FDI location choice in China: a discrete-choice analysis

Belkhodja, Omar; Mohiuddin, Muhammad; Karuranga, Égide

doi:10.1080/00036846.2016.1153786

Cited by 28 publications

(17 citation statements)

References 56 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Level of education (both higher and secondary) has positive influence on foreign direct investment attraction, but its significance is not very high, which was unpredicted. According to the previous research, education usually more significant in developed countries (Belkhodja, 2016). The effect of secondary education is stronger for mining regions, because such labor force is demanded in manufacturing field and most of foreign direct investment that flow into Russian economy, are flowing to mining sector.…”

Section: Results Of Empirical Analysismentioning

confidence: 95%

See 1 more Smart Citation

Determinants of Foreign Direct Investment Inflows: The Case of Heterogeneous Russian Regions

Vasilyeva¹,

Drapkin²,

Mariev³

2019

Proceedings of the 11th Economics &Amp; Finance Conference, Rome

View full text Add to dashboard Cite

The research is devoted to analysis of various regional factors that attract foreign direct investment. Taking into account that foreign direct investment can give a possibility to solve different social and economic problems, the main objective of the study is to reveal factors that promote foreign direct investment to regions of Russia. In the research two types of regions are considered: mining and non-mining. It is proposed that mining regions in Russia attract more foreign direct investment compared to non-mining ones. Therefore we provide econometric estimation on the database for 83 Russian regions for period from 2001 to 2017 using fixed-effects regression estimation. According to the results of the research a range of recommendations can be developed in order to enlarge foreign direct investment inflows.

show abstract

Section: Results Of Empirical Analysismentioning

confidence: 95%

“…Such factor as sector is considered to be significant for all countries. And the results of estimations show that the amount of foreign direct investment highly differs according to sector (Belkhodja, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of Foreign Direct Investment Inflows: The Case of Heterogeneous Russian Regions

Vasilyeva¹,

Drapkin²,

Mariev³

2019

Proceedings of the 11th Economics &Amp; Finance Conference, Rome

View full text Add to dashboard Cite

show abstract

“…the reviews by Agarwal, 1980; De Vita and Lawler, 2004; Abbott et al , 2012), also with respect to China (see, e.g. Sun et al , 2002; Barros et al , 2013; Belkhodja et al , 2017) where variables such as GDP, human capital, the level of infrastructure development, openness and agglomeration economies, have been found to have a significant impact. However, studies on PSFDI, especially in China, can be counted on one hand, and next to nothing is known about the specific FDI determinants at the sub-sector level of Chinese producer services.…”

Section: Introductionmentioning

confidence: 99%

“…[Figures I and II here] We contribute to this literature, first, by investigating the still unsettled question of whether the determinants of Chinese inward PSFDI differ from those of aggregate inward FDI, and then, by delving into the question of the key determinants of PSFDI at sub-sector level. The determinants of FDI have been studied comprehensively in previous theoretical and empirical research (see, e.g., the reviews by Agarwal, 1980;De Vita and Lawler, 2004;Abbott et al, 2012), also with respect to China (see, e.g., Sun et al, 2002;Barros et al, 2013;Belkhodja et al, 2017) where variables such as GDP, human capital, the level of infrastructure development, openness and agglomeration economies, have been found to have a significant impact. However, studies on PSFDI, especially in China, can be counted on one hand, and next to nothing is known about the specific FDI determinants at the sub-sector level of Chinese producer services.…”

mentioning

confidence: 99%

Determinants of FDI in producer services: evidence from Chinese aggregate and sub-sectoral data

Gao

Vita

Luo

et al. 2020

JES

View full text Add to dashboard Cite

PurposeThe purpose of this paper is to examine the determinants of foreign direct investment (FDI) in producer services in China using both country aggregate and provincial sub-sectoral data.Design/methodology/approachThis paper applies autoregressive distributed lag (ARDL) cointegration and panel data regression approaches in examining the determinants of Producer Service FDI (PSFDI).FindingsOur results show differences between the determinants of aggregate FDI and PSFDI. Contrary to the typical influencing factors of general FDI (that include GDP, openness, low wages and environmental quality), the two main determinants of PSFDI inflows to China are found to be high wages and research inputs (specifically the number of research workers as a proxy for research intensity). Data drawn from 26 Chinese provinces disaggregated at sub-sector level of producer services corroborate the results.Originality/valueWe add to existing literature by identifying the key determinants of inward PSFDI in China also via a provincial-level data analysis and disaggregation at sub-sectoral level of producer services.

show abstract

“…We intend to contribute to the literature on FDI localization in China [ 13 ] by providing new evidence on the determinants of firms’ choices, focusing on a fast growing high value-added and research-intensive industry—pharmaceuticals—and placing emphasis on the territorial level, analyzing the data at a quite disaggregated level—the counties. At the same time, our analysis employs a wide set of variables to capture the impact of tangible and intangible territorial assets as well as institutional and political variables on the localization of pharmaceutical FDIs’.…”

Section: Introductionmentioning

confidence: 99%

Determinants of FDI Localization in China: A County-Level Analysis for the Pharmaceutical Industry

Angelino

Yin

et al. 2017

IJERPH

View full text Add to dashboard Cite

Foreign direct investments (FDIs) have been widely recognized as a crucial feature of the Chinese industrial development process. Over the past decades, China has been attracting huge amounts of inward FDIs as a consequence of both spontaneous market dynamics and place-based preferential policies at the sub-national level. However, the Chinese market exhibits large dissimilarities in terms of FDI localization across territories that are worth investigating at a more disaggregated level. In this regards, our study explores the determinants of attraction of inward FDIs in China, at the county level. It focuses on the pharmaceutical industry and attempts to assess whether factors related to location advantages, agglomeration dynamics, information cost effects and environmental regulation costs affect foreign firms’ localization choices as well as invested amounts in that location. By means of discrete choice models, our paper confirms the findings of the prevalent literature about the positive effects of location advantages on pharmaceutical FDI attraction. Different from our expectations, a higher proportion of foreign enterprises do not stimulate significant effects on FDI localization, while preferential policies and sectoral agglomeration are positively correlated with the localization of pharmaceutical foreign firms. Finally, our results suggest that investing firms tend to avoid areas with strict environment regulation.

show abstract

The determinants of FDI location choice in China: a discrete-choice analysis

Cited by 28 publications

References 56 publications

Determinants of Foreign Direct Investment Inflows: The Case of Heterogeneous Russian Regions

Determinants of Foreign Direct Investment Inflows: The Case of Heterogeneous Russian Regions

Determinants of FDI in producer services: evidence from Chinese aggregate and sub-sectoral data

Determinants of FDI Localization in China: A County-Level Analysis for the Pharmaceutical Industry

Contact Info

Product

Resources

About