Sectoral location of FDI in China

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

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Original languageEnglish
Pages (from-to)1181-1198
Journal / PublicationWorld Economy
Volume34
Issue number7
Publication statusPublished - Jul 2011

Abstract

This study investigates the determinants of foreign direct investment (FDI) sectoral allocation in 29 manufacturing sectors in China from 2000 to 2007. We find that FDI sectoral allocation has a strong self-reinforcing effect. Multinational corporations with ownership advantages tend to invest more in local high-productivity sectors. The FDI presence, however, is discouraged in China's high-productivity sectors in which the major market share is dominated by state-owned enterprises. We also find that the degree of FDI penetration is higher in sectors that are producing labour-intensive goods and also export oriented. © 2011 Blackwell Publishing Ltd.

Citation Format(s)

Sectoral location of FDI in China. / Lin, Mi; Kwan, Yum K.

In: World Economy, Vol. 34, No. 7, 07.2011, p. 1181-1198.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review