Foreign Direct Investment in China: A Spatial Econometric Study

The relationship between foreign direct investment (FDI) flows to Chinese provinces and selected provincial characteristics. Two ordinary least squares regressions are estimated, as has been done in previous research, introducing some new variables and using more current FDI data. The results from the ordinary least squares regressions are consistent with past studies of the location determinants of FDI among Chinese provinces, as well as with studies of FDI location in general. For the case of China, provincial characteristics are also introduced that were not included in past studies.