 FOREIGN DIRECT INVESTMENT IN THE CONTEXT OF PRICE COMPETITIVENESS AND DEVELOPMENT OF THE PEOPLE'S REPUBLIC OF CHINAJuraj Bronček ()
Almanach (Actual Issues in World Economics and Politics), 2018, vol. 13, issue 3, 5-12 Abstract: The aim of the paper was to evaluate the development of foreign direct investment and their impact on the economy of the People's Republic of China. Investment from abroad stood behind its high growth at the beginning of the transformation of the economy and can be considered as a favourable development factor. Both directions of FDI flows have a positive relationship with real effective exchange rate (REER), hence with decreasing price competitiveness of China, the volume of FDI flows increases. It can be assumed that the closer China is to a fully liberalized investment market, the smaller the marginal increase in investment as a result of the REER increase. Another finding was that Chinese investors show a low aversion to risk, especially during the global financial crisis. There is a clear tendency of acquisition of companies in more progressive sectors with lower competition, putting pressure on regulators from advanced, market economies. Keywords: foreign direct investment; competitiveness; exchange rate (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:brv:almnch:v:10:y:2018:i:3:p:5-12 Access Statistics for this article More articles in Almanach (Actual Issues in World Economics and Politics) from Ekonomická univerzita, Fakulta medzinárodných vzťahov Contact information at EDIRC. |
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