Home economy heterogeneity in the determinants of China’s inward foreign direct investment

Tan, Hui and Zheng, Ping

(2011)

Tan, Hui and Zheng, Ping (2011) Home economy heterogeneity in the determinants of China’s inward foreign direct investment. Transnational Corporations, 20 (2).

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Abstract

This study explores whether the determinants and motivations of China’s inward foreign direct investment (FDI) are heterogeneous among the home economies. Categorizing the home economies into two sets of groups in terms of their economic development levels and geographic locations, this research found that China’s inward FDI determinants and motivations are different between the groups. Chinese inward FDI from non-OECD developing economies is more likely to be both horizontal and vertical types for efficiency-seeking and market-seeking purposes, while FDI from OECD developed economies is more likely to be horizontal market-seeking. FDI from Europe is more likely to be driven by the large Chinese market, while FDI from North America is more likely to be stimulated by China’s low input costs, and FDI from Asia is more likely to be attracted by both the large Chinese market and its low costs. These findings will be useful to the host government in devising better policies to enhance positive externalities created by the inflows of FDI.

Information about this Version

This is a Submitted version
This version's date is: 2011
This item is not peer reviewed

Link to this Version

https://repository.royalholloway.ac.uk/items/f8d46f7d-41cb-9aca-e4e9-4dda58fb1f96/3/

Item TypeJournal Article
TitleHome economy heterogeneity in the determinants of China’s inward foreign direct investment
AuthorsTan, Hui
Zheng, Ping
Uncontrolled KeywordsChina, inward foreign direct investment (FDI), geographic location, determinants, home economy, heterogeneity
DepartmentsFaculty of History and Social Science\Management
Research Groups and Centres\Management\Information and Communication Management

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Deposited by Research Information System (atira) on 24-Jul-2012 in Royal Holloway Research Online.Last modified on 24-Jul-2012


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