scholarly journals Effect of Precipitation on Location Choice of Foreign Direct Investment in China

Water ◽  
2021 ◽  
Vol 13 (23) ◽  
pp. 3417
Author(s):  
Zhiyuan Xu ◽  
Yuting Zhu ◽  
Yongliang Yang
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Eastern Region ◽  
Environmental Costs ◽  
Promoting Effect ◽  
Location Selection ◽  
Level Data ◽  
Low Degree ◽  
Location Adjustment ◽  
Investment In China

This paper studies the effect of precipitation on the location of foreign direct investment (FDI) based on city-level data of China from 2003 to 2018. The results show that precipitation has a significant promoting effect on the regional agglomeration of FDI. This indicates that FDI location selection is more inclined to use the dilution ability of precipitation for pollution to reduce environmental costs, rather than relying solely on water resources. Further analysis shows that the preference of FDI enterprises on precipitation in the eastern region is significantly lower than that in the central and northeastern regions. This reflects the trend that FDI enterprises gradually shift to regions with a low degree of environmental regulation to reduce environmental costs. Therefore, the efforts made by economically developed cities to improve the regional ecological environment may be offset by the location adjustment of FDI enterprises, and precipitation has become an important stimulus for the location transfer of FDI enterprises.

scholarly journals Panel Data Analysis on the Influence of Environmental Regulations on the Inflow of Foreign Direct Investment in China

2020 ◽  
Vol 15 (7) ◽  
pp. 1035-1044
Author(s):  
Hao Hu ◽  
Lei Dong ◽  
Hao Zhang ◽  
Haiyan Tang ◽  
Desheng Yin
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Fixed Effects ◽  
Environmental Regulations ◽  
Panel Data Analysis ◽  
Entropy Method ◽  
Eastern Region ◽  
Fixed Effects Model ◽  
Location Selection ◽  
Investment In China

From the micro level, this paper thoroughly investigates the influence of environmental regulations (ERS) on the inflow of foreign direct investment (FDI) in China. Firstly, the entropy method was adopted to comprehensively measure the ERS intensities of 283 Chinese cities at prefecture level and above in 2003-2016. Then, the Cournot model was utilized to analyze how ERS affects FDI. After that, fixed-effects model was employed to empirically examine the impacts of ERS intensities in eastern, central, and western regions on FDI inflow. The results show that: The regression results on nationwide, central, and western samples indicate that the influence of ERS variable was significantly negative. This means ERS is indeed an important consideration of foreign investors in location selection. Besides, stricter ERS hinders the inflow of FDI, which agrees with the pollution haven hypothesis. On eastern samples, stricter ERS promotes FDI inflow, that is, the situation in eastern region meets Porter hypothesis. Finally, several suggestions were presented for policymakers based on the empirical results.

scholarly journals The Determinants of Foreign Direct Investment in China: A Spatial Panel Analysis

2016 ◽  
Author(s):  
Chen-Chen Yong ◽  
Siew-Yong Yew ◽  
Xin Huang ◽  
Mui-Yin Chin
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Eastern Region ◽  
Panel Analysis ◽  
Fdi Inflows ◽  
Spatial Panel ◽  
Panel Model ◽  
Spatial Panel Model ◽  
Investment In China ◽  
Determinants Of Fdi

China is currently the major foreign direct investment (FDI) destination arising from her open door policies since 1978. FDI has become a large impetus to China’s economic growth. However, the geographical distribution of FDI in China is severely biased with 83% concentrated in the eastern region. This is a result of not only differences in locational advantages but also the result of the initiating policies and temporal differences of FDI inflows among the regions. This study aims to examine the determinants of FDI and examine empirically the possible coherent policies for the three regions of China (Eastern, Central and Western) using the spatial panel analysis for the data within the period of 1994 to 2008. The empirical results show that the determinants of FDI vary among the three regions, depending on the motives of the investor and the results of policy bias. The entrepreneurial nature of competition of FDI among the provinces revealed by the spatial FDI factor is a conclusion that cannot be ignored. A more coherent policy on FDI inflows into China is an urgent necessity, though the policies for each region must be, of necessity, different for each of the three regions.   Keywords: Foreign Direct Investment, China, Spatial panel model, spatial variables JEL: F14, C33

scholarly journals Impacts of Foreign Direct Investment and Industrial Structure Transformation on Haze Pollution across China

2021 ◽  
Vol 13 (10) ◽  
pp. 5439
Author(s):  
Chenggang Li ◽  
Tao Lin ◽  
Zhenci Xu ◽  
Yuzhu Chen
Keyword(s):  
Foreign Direct Investment ◽  
Environmental Pollution ◽  
Direct Investment ◽  
Industrial Structure ◽  
Spatial Data Analysis ◽  
Annual Data ◽  
Eastern Region ◽  
Structure Transformation ◽  
Haze Pollution ◽  
The Impact

With the development of economic globalization, some local environmental pollution has become a global environmental problem through international trade and transnational investment. This paper selects the annual data of 30 provinces in China from 2000 to 2017 and adopts exploratory spatial data analysis methods to explore the spatial agglomeration characteristics of haze pollution in China’s provinces. Furthermore, this paper constructs a spatial econometric model to test the impact of foreign direct investment (FDI) and industrial structure transformation on haze pollution. The research results show that the high-high concentration area of haze pollution in China has shifted from the central and western regions to the eastern region and from inland regions to coastal regions. When FDI increases by 1%, haze pollution in local and neighboring areas will be reduced by 0.066% and 0.3538%, respectively. However, the impact of FDI on haze pollution is heterogeneous in different stages of economic development. FDI can improve the rationalization level of industrial structure, and then inhibit the haze pollution. However, FDI inhibits the upgrading level of industrial structure to a certain extent, and then aggravates the haze pollution. The research in this paper provides an important decision-making basis for coordinating the relationship between FDI and environmental pollution and realizing green development.

Dialect Diversity and Foreign Direct Investment in China

2021 ◽  
Vol 29 (2) ◽  
pp. 49-72
Author(s):  
Wei Feng ◽  
Yanrui Wu ◽  
Yue Fu
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Investment In China

Foreign direct investment in China: Policy, recent trend and impact1

2004 ◽  
Vol 33 (2) ◽  
pp. 99-130 ◽  
Author(s):  
K.C. Fung ◽  
Hitomi Iizaka ◽  
Sarah Y. Tong
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Recent Trend ◽  
China Policy ◽  
Investment In China

Weak State, Strong Networks: The Institutional Dynamics of Foreign Direct Investment in China. By Hongying Wang. [Hong Kong: Oxford University Press, 2001. xiii+211 pp. HK$150.00. ISBN 019-590631-4.]

2002 ◽  
Vol 172 ◽  
pp. 1065-1103
Author(s):  
Qi Luo
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
Regime Theory ◽  
Weak State ◽  
Institutional Dynamics ◽  
State Institutions ◽  
Oxford University ◽  
Investment In China

This is a competent work that challenges the claim of new institutional economics and international regime theory that effective state institutions in the host country are vital to the inflow, and indeed growth, of foreign direct investment (FDI). It argues that the large amount of FDI China has attracted so far has been facilitated more by the informal societal institutions represented by strong personal networks operating in the country than by the formal state institutions manifested by the weak legal system. The author validates her arguments with a large number of anecdotes based on over 100 interviews she conducted in China.

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