Factors Influencing FDI Location Choice in China＇s Inland Areas

Since 1978, the bulk of foreign direct investment （FDI） has gone to the south-eastern coastal areas in China, with only a small portion received inland. With the launch of the Western Development Strategy in 2000 and the Central China Rising Strategy in 2004, the choice of investment locations has expanded to inland areas. Based on panel data covering 98 inland cities from 1999 to 2005, this study identifies location preference variables for FDI invested in China＇s inland areas, and finds that well-established factors such as natural resources and low labor costs are not important factors in determining FDI locations within China＇s inland. Instead, policy incentives and industrial agglomeration are the most important factors. The findings of the present study have policy implications for both host country authorities and multinational corporations.     

Changing Engines of Growth in China： From Exports, FDI and Marketization to Innovation and Exports

This paper investigates the changing sources of growth in post-reform China. Using crossprovince regressions, this paper finds that, in earlier periods, exports, foreign direct investment and marketization were significantly related to per capita income growth, whereas＇ since the late 1990s, foreign direct investment and marketization have lost their significance and have been replaced by new sources of growth, such as innovation and knowledge, with only exports continuing to be important. This finding is robust after controlling for other variables representing other economic policies and provincial characteristics. We also tackle the possible endogeneity of innovation variables using the instrumental variables estimation method.     

China＇s FDI Net Inflow and Deterioration of Terms of Trade： Paradox and Explanation

Starting from the contradiction between China's sustained growth in foreign direct investment (FDI) net inflow and deterioration of the terms of trade, this paper analyzes the characteristics of FDI sectoral structure since the 1990. Moreover, considering the international market competitive environment, this paper gives a concrete analysis of the influence mechanism and concludes that the flowing of FDI into labor‐intensive export sectors caused the deterioration of China's terms of trade. To improve its terms of trade, China needs to direct FDI inflow into capital‐ and technology‐intensive sectors and service sectors. (Edited by Xiaoming Feng)     

集聚经济与FDI的流入——对珠三角制造业的实证分析

集聚经济是指特定区位各种社会经济因素的集中和彼此相互作用所带来的经济收益。近年来，国内大量研究证实，当地集聚经济效果与FDI的流入有明显的正相关。     

我国吸收FDI的问题和对策

改革开放以来，我国吸收外国直接投资（FDI）取得了巨大的成绩，但自东南亚金融危机以来，外资流入发展中国家明显减少，外国直接投资的流向发生了新的变化，在我国即将加入WTO之际，我国吸收FDI出现了新的问题应予重视，应考虑新的对策。     

Clusters Pulled by FDI in China and the Development of the SMEs： Theory and Typical Cases Study

In China, clusters are divided into two categories according to their initial power. One category is the spontaneous and endogenous industrial cluster represented by clusters of a range of small and medium-sized private enterprises such as those in Zhejiang. The other represents those attracted by the foreign direct investment （FDI） such as those in Guangdong and Jiangsu. This paper focuses on the second type. It is an attempt to analyze the role of FDI in the development of industry clusters. It also tries to explain how existing clusters attract new FDI. The factors that constrain the promotion and development of SME clusters are also examined in this research. The countermeasures of promoting the healthy development of clusters and SMEs further are put forward.     

Productivity Spillovers from FDI in China： Regional Differences and Threshold Effects

Economic theory posits numerous channels through which FDI might create positive spillovers for domestic firms. However, the results of empirical studies that have sought to document these spillovers have been mixed. One explanation for this variation is that the capacity of domestic firms to absorb spillovers might vary. In the present paper, we explore these issues in the case of China. ,4side from being one of the world＇s leading hosts offoreign direct investment, China makes for an interesting case study because its provinces vary greatly with respect to those factors most commonly held to influence absorptive capacity, such as the initial level of technology in domestic firms. This paper begins by empirically establishing that the spillovers from foreign direct investment do indeed vary across provinces. Threshold values for varioas factors that influence absorptive capacity factors are then estimated and it is found that conditions in many provinces presently fall short of these values. This provides an obvious focus of attention for China＇s policy-makers.     

Effects on China and ASEAN of the ASEAN-China FTA: The FDI perspective

The ASEAN-China FTA (ACFTA) is a significant step in regional economic integration for both China and the ASEAN countries. While analysis of the effects of Free Trade Agreements (FTAs) most commonly focuses on the trade effects, the closeness of the link between trade and investment implies that the effect of an FTA on foreign direct investment (FDI) is also potentially significant. FTAs may stimulate FDI through the effects of market expansion and vertical fragmentation, while they may also reduce FDI through a plant rationalization effect. The overall effect of an FTA on FDI flows is an empirical question. This paper examines the impact of ACFTA on FDI flows through an econometric model that captures the influence of East Asian production networks on FDI, which we expect to be an important explanatory factor. The model finds that ACFTA has a significant and positive effect on FDI flows. A brief survey of the theoretical literature on the welfare and other related effects of FDI serves to emphasize that the extent to which individual member countries of the ACFTA will benefit from this increase in FDI will depend in important ways on the policies pursued in each country.     

Has China Crowded out Foreign Direct Investment from Its Developing East Asian Neighbors？

This paper applies a gravity model to investigate the determinants of foreign direct investment (FDI) in East Asia. Economic fundamentals, such as market size, per capita income and country risk indicators, economic and cultural ties, exchange rate volatilities and information asymmetry are found to be important determinants for FDI. Globally, the inward FDI among high-income OECD economies declined significantly on average over the period of 1990-2003, whereas the inward FDI of the high-income OECD economies in emerging market economies gained substantially. In the East Asian region, the ASEAN-4 (Indonesia, Malaysia, the Philippines and Thailand) received above-average inward FDI from the high-income OECD economies after controlling for their economic fundamentals. By contrast, China's FDI from the high-income OECD economies is below average relative to its economic fundamentals. Therefore, it is difficult to establish that China has crowded out FDI from its developing ASEAN neighbors.     

我国对外直接投资的监督与管理

通过分析我国对外投资监管政策与实践,进一步指出我国对外投资监管存在重前置监管、轻事后监管;重审批、轻协调以及重制度、轻控制这三个主要问题,然后在总结与分析国外监管实践的基础上,提出了提高我国对外投资监管水平的政策建议。     

日本引进外国直接投资与经济结构改革

20世纪90年代中期以后，日本一方面加大了引进外国直接投资的力度，另一方面又开始了新一轮经济结构改革，这两方面存在着密切的联系。随着外国直接投资的大量进入，日本对劳动力市场、企业和金融制度、税收制度等进行了重大的改革。从未来趋势看，引进外国直接投资可能在日本经济结构改革中有更强的促进作用。     

外商直接投资对安徽经济发展的影响及对策

外商直接投资对带动区域经济的发展具有重要作用。改革开放以来，安徽省在吸收和利用外商直接投资方面取得显著成效。文章概述了安徽外商直接投资的发展历程及特点，并运用EVIEWS软件对外商直接投资促进安徽经济发展作了实证分析。同时指出安徽在利用外商直接投资方面所存在的问题，并提出相应的对策建议。     

我国企业对东盟直接投资的金融对策研究

随着中国东盟自由贸易区的建成,中国与东盟的服务投资领域进一步的拓展,中国企业在东盟国家的投资将会得到进一步的提升。文章分析中国企业对东盟直接投资方面在金融上所面临的一些制约因素,以及如何改进我国的金融服务和加强金融合作为中国企业投资东盟服务。     

Labor Quality and Inward FDI： A Firm-level Empirical Study in China

This paper investigates the relationship between labor quality and inward foreign direct investment (FDI) distribution in China using a large sample of Chinese cross‐sectional, firm‐level data, with comprehensive information about labor quality. The paper finds that labor quality measured by education level plays an important role in deciding the distribution of inward FDI, but labor quality measured by working certificates loses its significance using non‐parametric matching techniques and the instrumental variables and generalized method of moments technique. The author also finds that labor quality has a more significant impact on other foreign investments than Hong Kong‐invested, Macau‐invested and Taiwan‐invested firms. The impacts of labor quality on inward FDI are found to be strongly uneven across industries and provinces. Therefore, China should pay more attention to the education of employees in all foreign‐invested firms, and invest more in education to improve labor quality, which will help China to attract more FDI, especially technology‐intensive FDI.