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

Kailei Wei; Suhan Li; Chunxia Jiang

doi:10.1080/13547860.2022.2066271

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

Accountancy & Finance, Finance

Hainan University

Research output: Contribution to journal › Article › peer-review

2 Citations (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 language	English
Pages (from-to)	445-469
Number of pages	25
Journal	Journal of the Asia Pacific Economy
Volume	27
Issue number	3
Early online date	21 Apr 2022
DOIs	https://doi.org/10.1080/13547860.2022.2066271
Publication status	Published - 26 Jul 2022

Bibliographical note

Funding
This research is financially supported by the Natural Science Foundation of China (72173036) and the Natural Science Foundation of Hainan Province (721RC515). The authors are solely responsible for any errors or omissions herein.

Keywords

FDI
belt and road initiative
regional differences
China

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Wei_etal_JAPE_The_Spatial_Heterogeneity_VOR
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Cite this

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title = "The spatial heterogeneity and time-varying nature of FDI determinants: evidence from China",

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.",

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N2 - 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.

AB - 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.

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

Abstract

Bibliographical note

Keywords

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