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What Attracts Foreign Multinational Corporations To China?

April 26, 2017attracts China corporations foreign multinational

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What Attracts Foreign Multinational Corporations To China?

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Author InfoKevin Honglin Zhang Abstract After adopting the open-door policy, China experienced a boom of inward foreign direct investment (FDI) by multinational corporations. This article attempts to assess effects of location characteristics and government policies on FDI flows during the period 1987-98. A model of FDI determinants is specified and estimated with cross-section and panel data. The estimates indicate that China’s huge market size, liberalized FDI regime, and improving infrastructure are attractive to multinationals. The regional distribution of FDI within China is influenced largely by FDI incentives and historical-cultural links with foreign investors, along with other location factors. Copyright 2001 Western Economic Association International. Download InfoTo download: If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further probl