Why FDI does not Flow into Western China: an Industrial Perspective

Xianming Yang () and Fan Yuan
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Xianming Yang: School of Development Studies, Yunnan University, China

Transnational Corporations Review, 2009, vol. 1, issue 2, 38-58

Abstract: The relative difficulty of attracting foreign direct investment (FDI) to western China is often attributed to geography. However, this explanation becomes less tenable as the gap between FDI stocks in western and eastern China increases. This paper attempts to explain the situation from an industrial perspective by exploring the differences between the two regions. It also analyzes the effects of industrial development, structure, and linking capability. The results reveal that industrial factors are important to the inflow of FDI to western China.

Keywords: foreign direct investment; western China; development (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:oul:tncr09:v:1:y:2009:i:2:p:38-58

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