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.
| Original language | English |
|---|---|
| Pages (from-to) | 1181-1198 |
| Journal | World Economy |
| Volume | 34 |
| Issue number | 7 |
| DOIs | |
| Publication status | Published - Jul 2011 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 9 Industry, Innovation, and Infrastructure -
SDG 17 Partnerships for the Goals
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