Are Investment Promotion Agencies Doing the Thing Right? Evidence from China

Bin Ni
Additional contact information
Bin Ni: PhD Candidate, Graduate School of Economics, Osaka University

No 13E004Rev., OSIPP Discussion Paper from Osaka School of International Public Policy, Osaka University

Abstract: This paper tries to verify how the establishment of investment promotion agencies (IPAs) affects the decisions of foreign firms regarding their subsequent investment by combining firm-level data from the World Bank fs Enterprise Survey with city-level information on (IPAs) in China. After correcting for potential endogeneity problems, the result confirms the IPAs f role in promoting incremental foreign direct investment (FDI) into China. Furthermore, it is shown that Hong Kong, Macau, and Taiwan (HMT) firms are less sensitive to IPAs f efforts in making further investment than are non-HMT foreign firms. In addition, IPAs are found to be more successful in enhancing foreign firms f investment in high-tech than in low-tech industries.

Keywords: China; investment promotion agency; firm-level data; sample selection (search for similar items in EconPapers)
JEL-codes: F21 F23 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2013-04, Revised 2015-01
New Economics Papers: this item is included in nep-cna and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.osipp.osaka-u.ac.jp/archives/DP/2013/DP2013E004Rev.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osp:wpaper:13e004rev.

Access Statistics for this paper

More papers in OSIPP Discussion Paper from Osaka School of International Public Policy, Osaka University Contact information at EDIRC.
Bibliographic data for series maintained by Akiko Murashita ().