Corruption, Governance and FDI Location in China: A Province-Level Analysis

Matthew Cole, Robert Elliott () and Jing Zhang

Discussion Papers from Department of Economics, University of Birmingham

Abstract: China's recent rapid growth has been matched by large increases in exports and foreign direct investment (FDI), but considerable regional disparities in FDI flows exist. We use detailed province level data for China to examine the determinants of intra-country FDI flows. Specifically, we investigate whether FDI is attracted to those regions that exhibit good governance and are most strongly engaged in the fight against corruption, constructing proxies for provincial government efficiency and anti-corruption effort. Our regression results confirm that FDI is attracted to provinces with relatively high levels of government efficiency and are actively involved in the fight against corruption.

Keywords: FDI; corruption; governance (search for similar items in EconPapers)
JEL-codes: D73 F21 O53 P37 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2008-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Corruption, Governance and FDI Location in China: A Province-Level Analysis (2009)
Working Paper: Corruption, Governance and FDI Location in China: A Province-Level Analysis (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:bir:birmec:08-06

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