Foreign Direct Investment Growth in China: Implications for Politics, the Economy and Culture

Attila Yaprak and Yingtao Xiao

Chapter 5 in Institutional Impacts on Firm Internationalization, 2015, pp 86-119 from Palgrave Macmillan

Abstract: Abstract Foreign direct investment (FDI) and the essential role it plays in the financing of national economies, especially those in the developing and emerging countries, has received a great deal of attention in international business. Among the many developing countries seeking economic growth from FDI, China has undoubtedly been the most successful one; statistics show that it has been the most attractive FDI destination during the past three decades (UNCTAD, 2005). Following China’s announcement of its ‘Open Door’ policy, FDI into China has enjoyed unprecedented growth, as many multinational enterprises (MNEs) benefited from the preferential treatment offered by the Chinese national and local governments. While some foreign investors have experienced difficulties in establishing and/or repatriating their benefits from investments due to ideological and cultural differences, most have been effective in their FDI operations (Luo, 2000).

Keywords: Foreign Direct Investment; Gross Domestic Product; Gross Domestic Product Growth Rate; Foreign Direct Investment Stock; Chinese Outward Foreign Direct Investment (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-44635-0_5

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DOI: 10.1057/9781137446350_5

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