Title

A city-level analysis of the distribution of FDI within China

Document Type

Journal article

Source Publication

Journal of Chinese Economic and Foreign Trade Studies

Publication Date

2017

Volume

10

Issue

1

First Page

2

Last Page

18

Publisher

Emerald Publishing Limited

Keywords

China, FDI, Government effectiveness, City level, Investment climate, F2, P2

Abstract

Purpose: The study aims to examine whether city-level investment climate, local government effectiveness and corporate income tax rates influence the spatial distribution of foreign direct investment (FDI) across cities in China.

Design/methodology/approach: The study uses regression analysis using city-level data sets.

Findings: The study finds that while city-level investment climate and effective local government influence the spatial distribution of FDI across Chinese cities, city-level tax rates have no such influence.

Practical implications: The results have implications for the design of policies aimed at enhancing FDI flows into emerging countries.

Originality/value: To date, few studies have investigated the investment location choice at the city level in a single country. The study contributes to the literature by examining the role of government in such investment decisions. It also adds to the previously limited research examining the role of investment climate at the micro level.

DOI

10.1108/JCEFTS-01-2016-0002

Print ISSN

17544408

E-ISSN

17544416

Funding Information

The authors gratefully acknowledge financial assistance through a Lingnan University Business Faculty Research Grant.

Publisher Statement

Copyright © Emerald Publishing Limited 2017. Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Recommended Citation

Cheng, S., Lin, K. & Simmons, R. (2017). A city-level analysis of the distribution of FDI within China. Journal of Chinese Economic and Foreign Trade Studies, 10(1), 2-18. doi: 10.1108/JCEFTS-01-2016-0002