Foreign Direct Investment and the Chinese Economy

2017 ◽  
Author(s):  
Chunlai Chen
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Chinese Economy

scholarly journals The Rise of China and Foreign Direct Investment from Southeast Asia

2011 ◽  
Vol 30 (2) ◽  
pp. 65-75 ◽  
Author(s):  
Krislert Samphantharak
Keyword(s):  
Foreign Direct Investment ◽  
Southeast Asia ◽  
Direct Investment ◽  
Network Effects ◽  
Ethnic Relations ◽  
Chinese Economy ◽  
Cheap Labour ◽  
Rise Of China ◽  
Growing Economy ◽  
Investment In China

This paper discusses foreign direct investment from Southeast Asia to China. With the exception of some government-linked companies, most investments from Southeast Asia have been dominated by the region's overseas Chinese businesses. In addition to cheap labour costs, large domestic market and growing economy, China has provided business opportunities to investors from Southeast Asia thanks to their geographic proximity and ethnic connections, at least during the initial investment period. However, the network effects seem to decline soon after. As the Chinese economy becomes more globalised and more competitive, the success of foreign investment in China will increasingly depend on business competency rather than ethnic relations.

scholarly journals Impact of Foreign Direct Investment (FDI) on Entrepreneurship Development in Jiangsu Province - China

2021 ◽  
pp. 202-212
Author(s):  
Michael Verner Menyah ◽  
Jincai Zhuang ◽  
Evelyn Sappor ◽  
Rejoice Akrashei
Keyword(s):  
Adverse Effect ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Social Scientist ◽  
Chinese Economy ◽  
Foreign Firms ◽  
Income Source ◽  
Entrepreneurship Development ◽  
Positive Effects ◽  
The Impact

Foreign Direct Investment (FDI) has served as a huge promoter of growth for many economies over the years, playing the role of supplementary income source for economies. The trend being identified now, however is that FDIs do come with adverse effect for host economies with one of the sector feeling the impact of the adverse impact being the local entrepreneurship. This study therefore measured the severity of the adverse effect of FDIs on the economy of China whiles also evaluating the contribution of FDIs to the overall economy using Sequential Explanatory Design (SED). Using Statistical Package for Social Scientist (SPSS), the researchers conducted statistical analysis like t-test, Correlation, Multiple Regression Analysis, R-Square, F-statistics and Variance Inflator Factors (VIF). The findings of the study revealed that FDIs indeed have both positive and negative implications for the Chinese economy. The positive effects come in the form of inspiring innovation and infrastructural development, influx of investment capital and the liberalization of the economy form monopolies and unfair trading The negative effect came in the form of stifling domestic entrepreneurship development as the foreign firms compete with local entrepreneurs for market, expertise, labor, capital and space for operation

Determinants of Inward Bound Foreign Direct Investment in Afirca and China

2021 ◽  
pp. 427-445
Author(s):  
Tafirenyika Sunde
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Empirical Studies ◽  
Geographic Location ◽  
Chinese Economy ◽  
African Countries ◽  
Cultural Variations ◽  
International Visibility ◽  
Property Registration ◽  
Determinants Of Fdi

The contribution of the chapter is to compare the empirical determinants of inward bound foreign direct investment in China and Africa and also find out what makes China an attractive FDI destination. To achieve this, the chapter analyses 15 empirical studies on China and 15 empirical studies on African countries. First, the chapter finds that the determinants of FDI common to both Africa and China include the market size, economic stability, resource, infrastructure, and efficiency-seeking factors. Second, the chapter establishes that the determinants of FDI specific to African countries include political stability, borrowing costs, country risks, access to land and property registration. Third, the chapter finds that the determinants of FDI that are specific to China include international visibility of regions, internal expenditure on research and development, geographic location and proximity (special economic zones and the opening of coastal cities), total cultural variations and the liberalisation of the Chinese economy.

A Comparative Analysis of the Patterns of Japanese and Korean Foreign Direct Investment in China

2012 ◽  
pp. 309-324 ◽  
Author(s):  
Jai S. Mah ◽  
Sunyoung Noh
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Value Added ◽  
Chinese Economy ◽  
The Past ◽  
Employment Generation ◽  
Japanese Fdi ◽  
Investment In China ◽  
Opening Up

The current paper compares the patterns of Japanese outward foreign direct investment (OFDI) in China with that of Korea. As a result of the opening up of the Chinese economy together with the accumulating foreign exchange reserves, their FDI in China has risen over the past decades. The share of Japanese FDI in China has remained less than 20 percent of Japanese OFDI as a whole, while Korean FDI in China reached two-fifths of its total OFDI. The gravity model appears to be suitable for explaining the pattern of Korean FDI in China. By industries, the manufacturing sector has accounted for as much as or over three quarters of Japanese and Korean FDI in China. The former appears to be focused more on value-added industries such as machinery contributing to transfer of advanced technologies, while the latter is relatively more concentrated on labor intensive industries contributing to employment generation.

scholarly journals CHINA’S INVESTMENT CLIMATE AND IT’S CONTRIBUTION TO THE GLOBAL SUSTAINABLE DEVELOPMENT ACHIEVEMENT

2021 ◽  
Vol 1 (30) ◽  
Author(s):  
Iryna S. Shkura ◽  
◽  
Kseniia O. Shepotko ◽  
Keyword(s):  
Sustainable Development ◽  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Legal Regulation ◽  
Chinese Economy ◽  
The State ◽  
Investment Climate ◽  
Competitiveness Index

The article analyzes the factors affecting China’s investment attractiveness, the features of creating a favorable investment climate in China, and investigates new trends of FDI in China. The article highlights the main directions of attracting foreign direct investment in the Chinese economy. The paper aims to systematize the theoretical aspects of the state’s investment attractiveness and analyze the investment attractiveness of the Chinese economy at the present stage of development. The purpose of the article is to determine the PRC’s contribution to global sustainable development, taking into account the fact that the PRC is strengthening its position in the world arena due to the inflow of foreign investments. The article initially examines the role of foreign direct investment in the development of the state’s economy. Each country has a specific approach to attracting foreign investment, which is predetermined by the level of socio-economic development, the degree of external openness, and the established objectives. Therefore, the first stage of the research was an analysis of investment inflows and outflows. Changes that took place due to the implementation of the “open door” policy were considered. Then the advantages and disadvantages of China’s policies aimed at stimulating foreign investment were analyzed in detail. We studied the state and dynamics of investment processes in the PRC, examined the specifics of the regional and sectoral structure of foreign investment in China, evaluated the economic essence and classification of foreign investment, forms and methods of state regulation of foreign investment, as well as some aspects of the legal regulation of investment activity in China. We have systematized the main advantages and risks of the PRC investment climate. It was found that, despite the significant investment attractiveness of China, there are many investment risks. Still, the Chinese government continues reforms aimed at improving the investment climate of the state. A review of China’s position in the ratings of investment attractiveness, such as the Ease of doing the business score, the Global Competitiveness Index, and the Global Sustainable Competitiveness Index was carried out. It was made an intermediate conclusion that foreign capital is increasingly rushing to developing countries, especially to the dynamically developing economies of the BRIC countries, the undisputed leader in attracting foreign investment among which is China. The work results give every reason to predict the growth of foreign investment in the PRC’s economy since the country is characterized by stable and positively dynamic development. It is also assumed that the inflow of investments into the PRC’s economy is reciprocal since China is smoothly turning from a recipient of investments into an investor ready to contribute to global sustainable development.

Selling China Looking Back and Looking Forward

2005 ◽  
Vol 1 (02) ◽  
pp. 309-313 ◽  
Author(s):  
Paul W. Beamish ◽  
Andrew Delios
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Positive Impact ◽  
Chinese Economy ◽  
Chinese Government ◽  
Large Role ◽  
Chinese Firms ◽  
Reform Era ◽  
General Argument ◽  
Looking Back

One of the objectives of Yasheng Huang's book Selling China: Foreign Direct Investment in the Reform Era is ‘to gain a better understanding of the operations of the Chinese economy in the 1990s as well as its FDI patterns’ (p. 69). We have no disagreement with Huang's general argument that for much of the 1990s domestic Chinese firms were less competitive than they would have been if the Chinese government had not favoured state-owned enterprises (SOEs). Similarly, while acknowledging the positive impact of FDI on China's development, Huang has real concern with FDI's disproportionately large role in the economy. He further feels that ‘some of China's FDI patterns may reflect institutional inefficiencies and weaknesses’ (p. 67). Again, we have no real disagreement that this was the case in the 1990s.

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