A city-level analysis of the distribution of FDI within China
Journal of Chinese Economic and Foreign Trade Studies
ISSN: 1754-4408
Article publication date: 6 February 2017
Abstract
Purpose
The study aims to examine whether city-level investment climate, local government effectiveness and corporate income tax rates influence the spatial distribution of foreign direct investment (FDI) across cities in China.
Design/methodology/approach
The study uses regression analysis using city-level data sets.
Findings
The study finds that while city-level investment climate and effective local government influence the spatial distribution of FDI across Chinese cities, city-level tax rates have no such influence.
Practical implications
The results have implications for the design of policies aimed at enhancing FDI flows into emerging countries.
Originality/value
To date, few studies have investigated the investment location choice at the city level in a single country. The study contributes to the literature by examining the role of government in such investment decisions. It also adds to the previously limited research examining the role of investment climate at the micro level.
Keywords
Acknowledgements
The authors gratefully acknowledge financial assistance through a Lingnan University Business Faculty Research Grant.
Conflict of Interest: The authors declare that they have no conflict of interest.
Citation
Cheng, S., Lin, K. and Simmons, R. (2017), "A city-level analysis of the distribution of FDI within China", Journal of Chinese Economic and Foreign Trade Studies, Vol. 10 No. 1, pp. 2-18. https://doi.org/10.1108/JCEFTS-01-2016-0002
Publisher
:Emerald Publishing Limited
Copyright © 2017, Emerald Publishing Limited