Determinants of FDI in producer services: evidence from Chinese aggregate and sub-sectoral data

Runda Gao; Glauco De Vita; Yun Luo; Jason Begley

doi:10.1108/JES-07-2020-0355

Determinants of FDI in producer services: evidence from Chinese aggregate and sub-sectoral data

Runda Gao, Glauco De Vita, Yun Luo, Jason Begley

University of Southampton

Research output: Contribution to journal › Article › peer-review

4 Citations (Scopus)

169 Downloads (Pure)

Abstract

Purpose: The purpose of this paper is to examine the determinants of foreign direct investment (FDI) in producer services in China using both country aggregate and provincial sub-sectoral data. Design/methodology/approach: This paper applies autoregressive distributed lag (ARDL) cointegration and panel data regression approaches in examining the determinants of Producer Service FDI (PSFDI). Findings: Our results show differences between the determinants of aggregate FDI and PSFDI. Contrary to the typical influencing factors of general FDI (that include GDP, openness, low wages and environmental quality), the two main determinants of PSFDI inflows to China are found to be high wages and research inputs (specifically the number of research workers as a proxy for research intensity). Data drawn from 26 Chinese provinces disaggregated at sub-sector level of producer services corroborate the results. Originality/value: We add to existing literature by identifying the key determinants of inward PSFDI in China also via a provincial-level data analysis and disaggregation at sub-sectoral level of producer services.

Original language	English
Pages (from-to)	869-892
Number of pages	24
Journal	Journal of Economic Studies
Volume	48
Issue number	4
Early online date	25 Aug 2020
DOIs	https://doi.org/10.1108/JES-07-2020-0355
Publication status	Published - 27 Apr 2021

Bibliographical note

Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.

This document is the author’s post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it.

Keywords

FDI
Producer services sector
Location determinants

ASJC Scopus subject areas

Economics, Econometrics and Finance(all)

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1108/JES-07-2020-0355

Post-PrintAccepted author manuscript, 1.36 MB

Cite this

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title = "Determinants of FDI in producer services: evidence from Chinese aggregate and sub-sectoral data",

abstract = "Purpose: The purpose of this paper is to examine the determinants of foreign direct investment (FDI) in producer services in China using both country aggregate and provincial sub-sectoral data. Design/methodology/approach: This paper applies autoregressive distributed lag (ARDL) cointegration and panel data regression approaches in examining the determinants of Producer Service FDI (PSFDI). Findings: Our results show differences between the determinants of aggregate FDI and PSFDI. Contrary to the typical influencing factors of general FDI (that include GDP, openness, low wages and environmental quality), the two main determinants of PSFDI inflows to China are found to be high wages and research inputs (specifically the number of research workers as a proxy for research intensity). Data drawn from 26 Chinese provinces disaggregated at sub-sector level of producer services corroborate the results. Originality/value: We add to existing literature by identifying the key determinants of inward PSFDI in China also via a provincial-level data analysis and disaggregation at sub-sectoral level of producer services.",

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Determinants of FDI in producer services: evidence from Chinese aggregate and sub-sectoral data

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

UN SDGs

Access to Document

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Fingerprint

Jason Begley

Glauco De Vita

Cite this

Determinants of FDI in producer services: evidence from Chinese aggregate and sub-sectoral data

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

UN SDGs

Access to Document

Other files and links

Fingerprint

Profiles

Jason Begley

Glauco De Vita

Cite this