A city-level analysis of the distribution of FDI within China

Lai Sheung, Suwina CHENG, Zhenpin, Kenny LIN, Richard SIMMONS

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

Abstract

Purpose: The study aims to examine whether city-level investment climate, local government effectiveness and corporate income tax rates influence the spatial distribution of foreign direct investment (FDI) across cities in China. Design/methodology/approach: The study uses regression analysis using city-level data sets. Findings: The study finds that while city-level investment climate and effective local government influence the spatial distribution of FDI across Chinese cities, city-level tax rates have no such influence. Practical implications: The results have implications for the design of policies aimed at enhancing FDI flows into emerging countries. Originality/value: To date, few studies have investigated the investment location choice at the city level in a single country. The study contributes to the literature by examining the role of government in such investment decisions. It also adds to the previously limited research examining the role of investment climate at the micro level.
Original languageEnglish
Pages (from-to)2-18
Number of pages17
JournalJournal of Chinese Economic and Foreign Trade Studies
Volume10
Issue number1
DOIs
Publication statusPublished - 1 Jan 2017

Fingerprint

Levels of analysis
China
Foreign direct investment
Investment climate
Spatial distribution
Local government
Tax rate
Emerging countries
Design methodology
Regression analysis
Role of government
Corporate income tax
Investment decision
Location choice

Keywords

  • China
  • City level
  • F2
  • FDI
  • Government effectiveness
  • Investment climate
  • P2

Cite this

@article{c01f013e07c24b12917f573b09766113,
title = "A city-level analysis of the distribution of FDI within China",
abstract = "Purpose: The study aims to examine whether city-level investment climate, local government effectiveness and corporate income tax rates influence the spatial distribution of foreign direct investment (FDI) across cities in China. Design/methodology/approach: The study uses regression analysis using city-level data sets. Findings: The study finds that while city-level investment climate and effective local government influence the spatial distribution of FDI across Chinese cities, city-level tax rates have no such influence. Practical implications: The results have implications for the design of policies aimed at enhancing FDI flows into emerging countries. Originality/value: To date, few studies have investigated the investment location choice at the city level in a single country. The study contributes to the literature by examining the role of government in such investment decisions. It also adds to the previously limited research examining the role of investment climate at the micro level.",
keywords = "China, City level, F2, FDI, Government effectiveness, Investment climate, P2",
author = "CHENG, {Lai Sheung, Suwina} and LIN, {Zhenpin, Kenny} and Richard SIMMONS",
year = "2017",
month = "1",
day = "1",
doi = "10.1108/JCEFTS-01-2016-0002",
language = "English",
volume = "10",
pages = "2--18",
journal = "Journal of Chinese Economic and Foreign Trade Studies",
issn = "1754-4416",
publisher = "Emerald Group Publishing Ltd.",
number = "1",

}

A city-level analysis of the distribution of FDI within China. / CHENG, Lai Sheung, Suwina; LIN, Zhenpin, Kenny; SIMMONS, Richard.

In: Journal of Chinese Economic and Foreign Trade Studies, Vol. 10, No. 1, 01.01.2017, p. 2-18.

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

TY - JOUR

T1 - A city-level analysis of the distribution of FDI within China

AU - CHENG, Lai Sheung, Suwina

AU - LIN, Zhenpin, Kenny

AU - SIMMONS, Richard

PY - 2017/1/1

Y1 - 2017/1/1

N2 - Purpose: The study aims to examine whether city-level investment climate, local government effectiveness and corporate income tax rates influence the spatial distribution of foreign direct investment (FDI) across cities in China. Design/methodology/approach: The study uses regression analysis using city-level data sets. Findings: The study finds that while city-level investment climate and effective local government influence the spatial distribution of FDI across Chinese cities, city-level tax rates have no such influence. Practical implications: The results have implications for the design of policies aimed at enhancing FDI flows into emerging countries. Originality/value: To date, few studies have investigated the investment location choice at the city level in a single country. The study contributes to the literature by examining the role of government in such investment decisions. It also adds to the previously limited research examining the role of investment climate at the micro level.

AB - Purpose: The study aims to examine whether city-level investment climate, local government effectiveness and corporate income tax rates influence the spatial distribution of foreign direct investment (FDI) across cities in China. Design/methodology/approach: The study uses regression analysis using city-level data sets. Findings: The study finds that while city-level investment climate and effective local government influence the spatial distribution of FDI across Chinese cities, city-level tax rates have no such influence. Practical implications: The results have implications for the design of policies aimed at enhancing FDI flows into emerging countries. Originality/value: To date, few studies have investigated the investment location choice at the city level in a single country. The study contributes to the literature by examining the role of government in such investment decisions. It also adds to the previously limited research examining the role of investment climate at the micro level.

KW - China

KW - City level

KW - F2

KW - FDI

KW - Government effectiveness

KW - Investment climate

KW - P2

UR - http://commons.ln.edu.hk/sw_master/5502

U2 - 10.1108/JCEFTS-01-2016-0002

DO - 10.1108/JCEFTS-01-2016-0002

M3 - Journal Article (refereed)

VL - 10

SP - 2

EP - 18

JO - Journal of Chinese Economic and Foreign Trade Studies

JF - Journal of Chinese Economic and Foreign Trade Studies

SN - 1754-4416

IS - 1

ER -