China's Inward Foreign Direct Investment Success: Southeast Asia in the Shadow of the Dragon

Buckley, Peter J.; Clegg, Jeremy; Cross, Adam R.; Hui Tan
March 2005
Multinational Business Review (St. Louis University);Spring2005, Vol. 13 Issue 1, p3
Academic Journal
This paper explores the impact of China's growing prominence in global and regional foreign direct investment (FDI) flows on the Southeast Asian countries as investment locations. Providing internal social and economic cohesion is maintained, China is likely to exert a greater pull on regional FDI after WTO accession. To benefit from China's success, the Southeast Asian countries will need to replace deteriorating individual locational advantages relative to China with a superior regional one. The ASEAN Free Trade Agreement or the Asian Investment Area or both are likely to be important policy solutions.


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