The regional distribution of foreign direct investment in China

The regional distribution of foreign direct investment in China, Reg. Studies 33, 857-867. This paper analyses the determinants of I:he regional distribution of both pledged and realized foreign direct investment (FDI) within China. The econometric properties of the panel data set are examined using a standardized 't-bar' test for unit root. The empirical results indicate that there exists a long run relationship between the spatial distribution of FDI and a number of regional characteristics. Provinces with a higher level of international trade, lower wage rates, more R&D manpower, higher GDP growth rates, quicker improvement in infrastructure, more rapid advances in agglomeration, more preferential policies and closer ethnic links with overseas Chinese attract relatively more pledged FDI.