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Foreign Direct Investment Growth in China: Implications for Politics, the Economy and Culture

In: Institutional Impacts on Firm Internationalization

Author

Listed:
  • Attila Yaprak
  • Yingtao Xiao

Abstract

Foreign direct investment (FDI) and the essential role it plays in the financing of national economies, especially those in the developing and emerging countries, has received a great deal of attention in international business. Among the many developing countries seeking economic growth from FDI, China has undoubtedly been the most successful one; statistics show that it has been the most attractive FDI destination during the past three decades (UNCTAD, 2005). Following China’s announcement of its ‘Open Door’ policy, FDI into China has enjoyed unprecedented growth, as many multinational enterprises (MNEs) benefited from the preferential treatment offered by the Chinese national and local governments. While some foreign investors have experienced difficulties in establishing and/or repatriating their benefits from investments due to ideological and cultural differences, most have been effective in their FDI operations (Luo, 2000).

Suggested Citation

  • Attila Yaprak & Yingtao Xiao, 2015. "Foreign Direct Investment Growth in China: Implications for Politics, the Economy and Culture," Palgrave Macmillan Books, in: Svetla Marinova (ed.), Institutional Impacts on Firm Internationalization, chapter 5, pages 86-119, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-44635-0_5
    DOI: 10.1057/9781137446350_5
    as

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