The spatial heterogeneity and time-varying nature of FDI determinants: evidence from China

Kailei Wei, Suhan Li, Chunxia Jiang* (Corresponding Author)

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

This article explores the spatial heterogeneity and time-varying nature of FDI determinants. It also examines the impact of the Belt and Road Initiative (BRI) on regional FDI inflows. Applying both the long-term static model and the short-term dynamic model to a provincial-level dataset in China over the 1979–2018 period, we find that FDI is positively affected by market size, labour costs, openness, transport infrastructure, human capital, and the exchange rate, but negatively affected by population, and more importantly, these effects are heterogeneous across regions and over different time periods. We also find that provinces directly involved in the BRI became less attractive to foreign investors after the launch of the BRI in 2013.
Original languageEnglish
Number of pages25
JournalJournal of the Asia Pacific Economy
Early online date21 Apr 2022
DOIs
Publication statusE-pub ahead of print - 21 Apr 2022

Keywords

  • FDI
  • belt and road initiative
  • regional differences
  • China

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