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A Study on the Determinant of FDI in China

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In general, FDI influences the income, production, prices, employment, economic growth, development and welfare of the recipient country; it is the main element of world’s economic development and globalization in the 21st century and especially is the engines of China’s economy from 1980s. In this paper, we based the data from 1982~2006 to examine the determinants of EU, US, and Korea and Japan’s FDI flows into China. The results indicate that the dynamic of FDI evolution is closely associated with the process of legal modernization and policy reform that are required to move toward a market-oriented host country. By using the method of multiple regressions, this paper has especially found that the extent of market opening is the main determinant. This paper shows the distinctions of FDI from different sources.

Abstract

In general, FDI influences the income, production, prices, employment, economic growth, development and welfare of the recipient country; it is the main element of world’s economic development and globalization in the 21st century and especially is the engines of China’s economy from 1980s. In this paper, we based the data from 1982~2006 to examine the determinants of EU, US, and Korea and Japan’s FDI flows into China. The results indicate that the dynamic of FDI evolution is closely associated with the process of legal modernization and policy reform that are required to move toward a market-oriented host country. By using the method of multiple regressions, this paper has especially found that the extent of market opening is the main determinant. This paper shows the distinctions of FDI from different sources.

참고문헌 (21)

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