Since 1978, the bulk of foreign direct investment (FDI) has gone to the south-eastern coastal areas in China, with only a small portion received inland. With the launch of the Western Development Strategy in 2000 and the Central China Rising Strategy in 2004, the choice of investment locations has expanded to inland areas. Based on panel data covering 98 inland cities from 1999 to 2005, this study identifies location preference variables for FDI invested in China's inland areas, and finds that well-established factors such as natural resources and low labor costs are not important factors in determining FDI locations within China's inland. Instead, policy incentives and industrial agglomeration are the most important factors. The findings of the present study have policy implications for both host country authorities and multinational corporations. Copyright (c) 2008 The Authors.

Among developing countries, China is the world's largest foreign direct investment (FDI) destination. A significant portion of the FDI in China comes from multinational corporations' (MNCs) subsequent investments of retained earnings or additional capital contribution. However, the characteristics of MNCs' subsequent investment have not been systematically studied. This study attempts to examine MNCs' subsequent investment in China both conceptually and empirically. Conceptually, the study approaches three levels of determinants: firm, location, and international, within an integrated model. Empirically, the study considers whether origin, experience, initial location, and other related factors significantly affect subsequent investment of MNCs after their initial entry into the Chinese market. Through empirical analyses, this study identifies some statistically significant factors around MNCs' subsequent investment decisions in China. © 2008 Wiley Periodicals, Inc.

Mobile communications have experienced rapid growth in China and play an increasingly important role in the country’s economic development. However, there is still vast regional imbalance in China’s communications industry which we will be exploring here, including examining what factors influence diffusion paths and cause these differences. Through a two‐step estimate method, this paper successfully describes the differences in the diffusion paths of mobile communications in different regions of China. It evaluates the impacts of industry variables, intra‐regional income gaps, macroeconomic factors (such as degree of urbanisation) and geographic effects of neighbouring provinces. Our work may be helpful to inform policymaking for effective and equitable development.