Advances in Economics, Management and Political Sciences

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Proceedings of the 6th International Conference on Economic Management and Green Development (ICEMGD 2022), Part Ⅰ

Series Vol. 3 , 21 March 2023


Open Access | Article

The Main Factors Contributing to China’s FDI

Zheng Gao * 1 , Xinye Li 2 , Yu Mo 3 , Jiaxing Wang 4
1 Economics, University of Bristol, Bristol, BS8 1TH, United Kingdom
2 School of Business and economics, Universiti Putra Malaysia(UPM), Kuala Lumpur, 43400, Malaysia
3 Economics, University of Macau, Macau, 999078, China
4 Applied Economics, Macau University of science and technology, Macau, 999078, China

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 3, 147-153
Published 21 March 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Zheng Gao, Xinye Li, Yu Mo, Jiaxing Wang. The Main Factors Contributing to China’s FDI. AEMPS (2023) Vol. 3: 147-153. DOI: 10.54254/2754-1169/3/2022776.

Abstract

According to the data recently released by OECD, the world's foreign direct investment showed a significant decline of 42% in 2020. However, China's FDI rose against the trend, becoming the world's largest foreign capital inflow country for the first time, and surpassing the United States. This paper uses the data of the Chinese National Bureau of Statistics and Wind data to analyze the main factors contributing to China's FDI. The results show that in the overall multiple linear regression, only the ratio of exports and imports has a negative correlation with FDI, the ratio of foreign trade to GDP, population, and the number of international firms have positive and the trade war between US and China and Covid-19 pandemic are not significant for FDI, the coefficient of two variables is both negative. For the multiple linear regression by year, the significant influencing factors in different years are different and show volatility.

Keywords

GDP, Covid-19, International firm, Population, Import and export ratio, FDI, Trade war

References

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2. Zou, Z., Chen, X.Research on the impact mechanism of FDI on China's high-quality economic development under the constraints of environmental regulation -- An Empirical Analysis Based on intermediary effect and threshold effect [J / OL] Scientific and technological progress and Countermeasures: 1-10 [2022-02-17] http://kns.cnki.net/kcms/detail/42.1224.g3.20220121.1335.006.html.

3. Zhou, X., Tan, J., Guo, P., Du, W. The impact of FDI level spillover and independent R & D on industrial output -- a multidimensional threshold effect test based on the panel data of Guangdong, Hong Kong, and Macao Bay Area [J / OL] Resources and Industry: 1-20 [2022-02-17] DOI:10.13776/j.cnki. resourcesindustries. 20211221.012.

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6. Li Minjie, WANG Jian. Space-time evolution characteristics of China's logistics industry FDI and its driving mechanism analysis [J]. Journal of statistics and decision, 2022, 38 (01) : 85-89. The DOI: 10.13546 / j.carol carroll nki tjyjc. 2022.01.018.

7. Li Jian, Wu min Dual environmental regulation, FDI and green Total Factor Productivity -- a case study of three urban agglomerations in the Yangtze River economic belt [J] East China economic management, 2022,36 (01): 31-41 DOI:10.19629/j.cnki. 34-1014/f.210818002.

8. 2013 Edition International Trade and Foreign - Europa. https://ec.europa.eu/eurostat/documents/3930297/5969114/KS-FO-12-001-EN.PDF.

9. “Foreign Direct Investment Flows in the Time of Covid-19.” OECD, 4 May 2020, https://www.oecd.org/coronavirus/policy-responses/foreign-direct-investment-flows-in-the-time-of-covid-19-a2fa20c4/.

10. Bborzyko. “The Dire Ripple Effect from a US-China Trade War: A Drop in Foreign Investment Worldwide.” CNBC, CNBC, 6 July 2018, https://www.cnbc.com/2018/07/05/ripple-effect-from-pending-us-china-trade-war-drop-in-fdi-worldwide.html.

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 6th International Conference on Economic Management and Green Development (ICEMGD 2022), Part Ⅰ
ISBN (Print)
978-1-915371-15-7
ISBN (Online)
978-1-915371-16-4
Published Date
21 March 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/3/2022776
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated