Sectoral Location of FDI in China

Mi Lin and Yum K. Kwan

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the determinants of FDI sectoral allocation in 29 China’s manufacturing sectors from 2000 to 2007. We find that FDI sectoral allocation has a strong self-reinforcing effect. MNCs with ownership advantages tend to invest more in local high productivity sectors. The FDI presence, however, is discouraged in China’s high productivity sectors in which the major market share is dominated by SOEs. We also find that the degree of FDI penetration is higher in sectors that are producing labor-intensive goods and also export-oriented.

Keywords: Foreign Direct Investment; Dynamic Panel Regression (search for similar items in EconPapers)
JEL-codes: F21 F23 O53 (search for similar items in EconPapers)
Date: 2010-08-20
New Economics Papers: this item is included in nep-dev, nep-int and nep-tra
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Related works:
Journal Article: Sectoral Location of FDI in China (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:27088

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