TY - JOUR
T1 - The spatial heterogeneity and time-varying nature of FDI determinants
T2 - evidence from China
AU - Wei, Kailei
AU - Li, Suhan
AU - Jiang, Chunxia
N1 - 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.
PY - 2022/4/21
Y1 - 2022/4/21
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.
KW - FDI
KW - belt and road initiative
KW - regional differences
KW - China
U2 - 10.1080/13547860.2022.2066271
DO - 10.1080/13547860.2022.2066271
M3 - Article
JO - Journal of the Asia Pacific Economy
JF - Journal of the Asia Pacific Economy
ER -