FDI location and the relevance of spatial linkages : evidence from provincial and industry FDI in China
Document Type
Journal article
Source Publication
Review of International Economics
Publication Date
2-1-2014
Volume
22
Issue
1
First Page
86
Last Page
104
Publisher
Wiley-Blackwell Publishing Ltd.
Abstract
In this study both aggregate and industry-level foreign direct investment (FDI) data are employed to investigate the spatial dependence of FDI hosts. The analysis contributes to the existing literature by focusing on the heterogeneous spatial correlation of FDI in different industries. Using more comprehensive FDI data across multiple industries and multiple provinces in China from 1999 to 2007, the results show a significant spatial correlation among provinces. Aggregate FDI tends to be regional trade platform oriented indicating neighboring provinces become competitors for FDI. In contrast, results based on industry-level provincial FDI show stronger support for vertical or complex vertical FDI.
DOI
10.1111/roie.12098
Print ISSN
09657576
E-ISSN
14679396
Publisher Statement
Copyright © 2014 John Wiley & Sons Ltd
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Sharma, S., Wang, M., & Wong, M. C. S. (2014). FDI location and the relevance of spatial linkages: Evidence from provincial and industry FDI in China. Review of International Economics, 22(1), 86-104. doi: 10.1111/roie.12098