Reaching for the Goal: Do Economic Growth Targets Drive FDI Inflows in China?

Yi He ()
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Yi He: Xihua University, School of Management

A chapter in Proceedings of the 8th International Conference on Financial Innovation and Economic Development (ICFIED 2023), 2023, pp 419-425 from Springer

Abstract: Abstract This paper studies the impacts of economic growth targets on foreign direct investment (FDI) in prefecture-level cities. In China’s political promotion system, it is found that local governments seek to achieve such targets by introducing more FDI. And favorable investment environments for foreign enterprises strengthen the effects of economic growth targets on FDI inflows. Such a finding provides a new insight into the determinants of FDI inflows from the perspective of government target management.

Keywords: economic growth target; foreign direct investment; investment environment; promotion tournament (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-142-5_47

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DOI: 10.2991/978-94-6463-142-5_47

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