Location Factors and Country-of-Origin Differences: An Empirical Analysis of FDI in China

Zhao, Hongxin; Zhu, Gangti
March 2000
Multinational Business Review (St. Louis University);Spring2000, Vol. 8 Issue 1, p60
Academic Journal
Using foreign direct investment (FDI) data of 50 locations over a four-year period in China, we investigated the effects of heterogeneous location factors and countries-of-origin on the level of FDI inflow. Results indicate that while market potential, cost factors, and infrastructure adequacy affect FDI location preference, foreign investors do reveal divergent sensitivity to a set of location variables. Statistical results from structure break tests and multiple regression analysis showed that responses to location-specific factors vary significantly among foreign investors with different countries-of-origin.


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