Spatial Policy îf Exporting Direct Investments: Features îf China

Alina Nikolaevna Novopashina ()
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Alina Nikolaevna Novopashina: Amur State University; Amur Laboratory of Economics and Sociology. Economic Research Institute FEB RAS

Spatial Economics=Prostranstvennaya Ekonomika, 2014, issue 1, 79-100

Abstract: In recent years, China has shown rapid growth in volumes of foreign direct investment (FDI), which is the consequence of implementing policy. However, the structure of FDI does not correspond to the government-supported areas. Existing theoretical and empirical studies don’t reveal the causes of China’s FDI. Results of the regression analysis (based on panel data for 2003-2010) prove that the most attractive for Chinese investors were countries with following features: 1) rich in mineral resources, 2) possessing advanced technologies, 3) higher than in China income levels, 4) geographic proximity to China and 5) foreign trade openness. Furthermore, features of the current institutional environment in China affect the directions of foreign direct investment. Investors from PRC direct FDI in developing countries which have low quality of institutions as well as China. Investing in these countries is primarily aimed at getting access to their mineral resources and consumer markets. As for investing in developed countries, the reason is acquisition of advanced technologies which they possess. Directions of FDI in these countries, on the contrary, are determined by the high quality of institutions.

Keywords: ?; Foreign; direct; investment; ?; developed; countries; ?; developing; countries; ?; investment; reasons; ?; factors; ?; features; ?; structure; ?; China (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:far:spaeco:y:2014:i:1:p:79-100

DOI: 10.14530/se.2014.1.079-100

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