IDEAS home Printed from https://ideas.repec.org/p/adl/cercwp/1996-03.html
   My bibliography  Save this paper

Recent Developments in Foreign Direct Investment in China

Author

Listed:
  • Chen Chunlai

Abstract

Since 1993 China has become the second largest FDI recipient in the world and the single largest host country among the developing countries. This paper finds that the regional distribution of FDI inflows into China has been very uneven and mainly concentrated in the East region. Among the economic sectors, industry and real estate sectors are the major FDI recipients. FDI inflows into China are mainly concentrated in labour intensive manufacturing industries, which reveals that taking advantage of ChinaÂ’s cheap labour is the main motive for foreign investors in China. FDI inflows into China have been dominated by NIEs, especially by Hong Kong. This paper discusses several factors for the domination of NIEsÂ’ investments in China and reviews the recent policy and regulation changes towards FDI.

Suggested Citation

  • Chen Chunlai, 1996. "Recent Developments in Foreign Direct Investment in China," Chinese Economies Research Centre (CERC) Working Papers 1996-03, University of Adelaide, Chinese Economies Research Centre.
    • Handle: RePEc:adl:cercwp:1996-03
    as

    Download full text from publisher

    File URL: https://media.adelaide.edu.au/economics/papers/cerc/cercwp1996-03.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tain-jy Chen & Yi-Ping Chen, 1995. "Foreign Direct Investment," Industry and Innovation, Taylor & Francis Journals, vol. 2(1), pages 57-68.
    2. Harrold, P. & Lall, R., 1993. "China: Reform and Development in 1992-93," World Bank - Discussion Papers 215, World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bijit Bora & Chen Chunlai, 1997. "The Internationalisation of China and Its Implications for Australia," Chinese Economies Research Centre (CERC) Working Papers 1997-05, University of Adelaide, Chinese Economies Research Centre.
    2. Cletus C. Coughlin & Eran Segev, 2000. "Foreign Direct Investment in China: A Spatial Econometric Study," The World Economy, Wiley Blackwell, vol. 23(1), pages 1-23, January.
    3. Dees, Stephane, 1998. "Foreign Direct Investment in China: Determinants and Effects," Economic Change and Restructuring, Springer, vol. 31(2-3), pages 175-194.
    4. Chao Yang Peng, 1996. "Challenges to China's Energy Security," Chinese Economies Research Centre (CERC) Working Papers 1996-08, University of Adelaide, Chinese Economies Research Centre.
    5. Jianhong Zhang, 2005. "An explanatory study of bilateral FDI relations: The case of China," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 3(2), pages 133-150.
    6. Elissa Braunstein & Mark Brenner, 2007. "Foreign direct investment and gendered wages in urban China," Feminist Economics, Taylor & Francis Journals, vol. 13(3-4), pages 213-237.
    7. Nada Massoud, 2003. "Assessment of FDI Incentives in Egypt," Working Papers 0336, Economic Research Forum, revised 11 2003.
    8. Yi Liu & Cecil Pearson, 2011. "The Determining Factors of Western Australia’s (WA) Foreign Investment in China," Global Business Review, International Management Institute, vol. 12(1), pages 1-20, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. WHALLEY, John & XIN, Xian, 2010. "China's FDI and non-FDI economies and the sustainability of future high Chinese growth," China Economic Review, Elsevier, vol. 21(1), pages 123-135, March.
    2. Dedrick, Jason & Kraemer, Kenneth L. & Palacios, Juan J. & Tigre, Paulo Bastos & Botelho, Antonio Jose Junqueira, 2001. "Economic Liberalization and the Computer Industry: Comparing Outcomes in Brazil and Mexico," World Development, Elsevier, vol. 29(7), pages 1199-1214, July.
    3. Jai S. Mah & Myeong Yeo, 2014. "The Role of the Government in R&D Promotion and the Development of Technology-Intensive Industries in China," China Report, , vol. 50(2), pages 91-107, May.
    4. Kuo, Chun-Chien & Yang, Chih-Hai, 2008. "Knowledge capital and spillover on regional economic growth: Evidence from China," China Economic Review, Elsevier, vol. 19(4), pages 594-604, December.
    5. Roger Farrell, 2000. "Japanese Foreign Direct Investment in the World Economy 1951-1997," Asia Pacific Economic Papers 299, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    6. Yao, Shujie & Wei, Kailei, 2007. "Economic growth in the presence of FDI: The perspective of newly industrialising economies," Journal of Comparative Economics, Elsevier, vol. 35(1), pages 211-234, March.
    7. Bharati Basu & Jianfeng Yao, 2009. "Foreign Direct Investment and Skill Formation in China," International Economic Journal, Taylor & Francis Journals, vol. 23(2), pages 163-179.
    8. Abdullahi Ahmed & Enjiang Cheng & George Messinis, 2011. "The role of exports, FDI and imports in development: evidence from Sub-Saharan African countries," Applied Economics, Taylor & Francis Journals, vol. 43(26), pages 3719-3731.
    9. Raza, Syed Ali & Jawaid, Syed Tehseen & Afshan, Sahar, 2013. "Is Stock Market Sensitive to Foreign Capital Inflows and Economic Growth? Evidence from Pakistan," MPRA Paper 48399, University Library of Munich, Germany.
    10. Facchini, Giovanni & Liu, Maggie Y. & Mayda, Anna Maria & Zhou, Minghai, 2019. "China's “Great Migration”: The impact of the reduction in trade policy uncertainty," Journal of International Economics, Elsevier, vol. 120(C), pages 126-144.
    11. Günseli Berik & Yana Meulen Rodgers & Joseph E. Zveglich, 2004. "Does Trade Promote Gender Wage Equity? Evidence from East Asia," Palgrave Macmillan Books, in: William Milberg (ed.), Labor and the Globalization of Production, chapter 7, pages 146-178, Palgrave Macmillan.
    12. Jeffrey A. EDWARDS & Cephas B. NAANWAAB & Alfredo A. ROMERO, 2017. "Effect of FDI on real per capita GDP Growth: A Rolling Window Panel Analysis of 60 countries, 1982-2011," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(1), pages 19-36.
    13. He, Jie, 2006. "Pollution haven hypothesis and environmental impacts of foreign direct investment: The case of industrial emission of sulfur dioxide (SO2) in Chinese provinces," Ecological Economics, Elsevier, vol. 60(1), pages 228-245, November.
    14. Florence Marque, 1998. "Dimensions économique, institutionnelle et monétaire de l'intégration régionale en Asie orientale," Revue Tiers Monde, Programme National Persée, vol. 39(156), pages 835-860.
    15. Lloyd, P. J. & MacLaren, Donald, 2000. "Openness and growth in East Asia after the Asian crisis," Journal of Asian Economics, Elsevier, vol. 11(1), pages 89-105.
    16. Omar Belkhodja, 2016. "FDI Location Decision: Evidence from Firms Investing in China," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(6), pages 1-47, May.
    17. He, Jia & Rui, Oliver M. & Zha, Xiaolei, 2011. "Governance Infrastructure and Location of Foreign Direct Investment in the People’s Republic of China," ADBI Working Papers 324, Asian Development Bank Institute.
    18. Zaib Maroof & Shahzad Hussain & Muhammad Jawad & Munazza Naz, 2019. "Determinants of industrial development: a panel analysis of South Asian economies," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(3), pages 1391-1419, May.
    19. Jeon, Yongbok & Park, Byung Il & Ghauri, Pervez N., 2013. "Foreign direct investment spillover effects in China: Are they different across industries with different technological levels?," China Economic Review, Elsevier, vol. 26(C), pages 105-117.
    20. Yushi Yoshida & Hiro Ito, 2006. "How Do the Asian Economies Compete With Japan in the US Market? Is China Exceptional? A Triangular Trade Approach," Asia Pacific Business Review, Taylor & Francis Journals, vol. 12(3), pages 285-307, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adl:cercwp:1996-03. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dmitriy Kvasov (email available below). General contact details of provider: https://edirc.repec.org/data/ceradau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.