Title

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

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

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