FDI location and the relevance of spatial linkages : evidence from provincial and industry FDI in China

Shalendra SHARMA, Miao WANG, M. C. Sunny WONG

Research output: Journal PublicationsJournal Article (refereed)

9 Citations (Scopus)

Abstract

In this study both aggregate and industry-level foreign direct investment (FDI) data are employed to investigate the spatial dependence of FDI hosts. The analysis contributes to the existing literature by focusing on the heterogeneous spatial correlation of FDI in different industries. Using more comprehensive FDI data across multiple industries and multiple provinces in China from 1999 to 2007, the results show a significant spatial correlation among provinces. Aggregate FDI tends to be regional trade platform oriented indicating neighboring provinces become competitors for FDI. In contrast, results based on industry-level provincial FDI show stronger support for vertical or complex vertical FDI.
Original languageEnglish
Pages (from-to)86-104
Number of pages19
JournalReview of International Economics
Volume22
Issue number1
Early online date13 Jan 2014
DOIs
Publication statusPublished - Feb 2014
Externally publishedYes

Bibliographical note

This project is partially supported by Marquette University College of Business Administration Miles Summer Research Grant.

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