Determinants of Regional Distribution of FDI Inflows across China’s Four Regions

Liu, Kelly H.; Daly, Kevin; Varua, Maria Estela

doi:10.5539/ibr.v5n12p119

Cited by 16 publications

(23 citation statements)

References 5 publications

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“…The higher GDP and INDEX values indicate that more foreign funds are required to increase TDI in China. This finding is in agreement with the findings reported by Sun et al (2002) and Liu et al (2012).…”

Section: Regression Analysessupporting

confidence: 94%

“…Taiwanese FDI enterprises investing in high-technology electronic industries capitalized on the tax rate 15%, and TDI in high-technology electronics industries increased; thus, H3 is supported. This finding is consistent with the results reported by Liu et al (2012). Table 5 shows the variables for controlling the effect of nontax factors on TDI.…”

Section: Regression Analysessupporting

confidence: 91%

“…The results confirmed a significant effect of market size on cross-border location decisions. Liu et al (2012) analyzed the relative importance of the potential determinants of FDI inflow across the coastal, northeastern, central, and western regions in China between 2001 and 2009. Specifically, they examined market size, labor cost, labor quality, physical infrastructure development, telecommunications, and the degree of economic openness and government incentives to attract FDI.…”

Section: Macroeconomic Factorsmentioning

confidence: 99%

See 2 more Smart Citations

Do the changes in tax incentives encourage direct investment in China by Taiwanese enterprises?

Lin¹,

Wang²

2014

J. Account. Taxation

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This study examined the association between tax incentives of China's 2008 Enterprise Income Tax Law (the 2008 tax law) and inflows of foreign direct investments from Taiwanese enterprises (TDI) toChina. In addition, this study also investigated the effects of industry and location on TDI. This study showed that reduced tax rate concessions for foreign enterprises and increased tax rate considerably reduced TDI inflow to China. Furthermore, industry-specific tax incentives became more favorable than location-specific tax incentives after the new tax laws were introduced. The results of joint tests of tax reform and tax incentives indicated that the 2008 tax law did not provide location-specific tax incentives for TDI, while industry-specific tax incentives appeared to be more attractive to TDI. Moreover, Taiwanese enterprises with intensive indirect investment in China as well as with higher shareholdings were inclined to have higher TDI. The implications of these findings implied that foreign direct investment strategy in accordance with industry-specific and location-specific tax incentives can enhance the competitive advantages of multinational companies.

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Section: Regression Analysessupporting

confidence: 94%

Section: Regression Analysessupporting

confidence: 91%

Section: Macroeconomic Factorsmentioning

confidence: 99%

See 1 more Smart Citation

Do the changes in tax incentives encourage direct investment in China by Taiwanese enterprises?

Lin¹,

Wang²

2014

J. Account. Taxation

View full text Add to dashboard Cite

show abstract

“…Another study by Liu et al (2012a) in China offers various descriptions. For example, they find that market size becomes a priority factor for the FDI inflow to the coastal areas and eastern coastal area, whereas the level of the openness becomes the most important factor for the FDI inflow in the middle-land areas.…”

Section: Literature Reviewmentioning

confidence: 99%

The Determinants of Foreign Direct Investment Across Provinces in Indonesia: The Role of Market Size, Resources, and Competitiveness

2019

JEM

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The paper aims to analyze the determinants of foreign direct investment (FDI) in Indonesia for the period of 1990-2014, before and after the implementation of the regional autonomy policy. This study used a panel data regression technique throughout 26 province analysis units. Several important factors affecting the FDI across the provinces are considered, such as market size indicators (GDP and population), resource indicators (labor force and human resources), and competitiveness indicators (electricity, road length, wages, and export). The results show that only two indicators, namely resources and competitiveness, are statistically significant in influencing the FDI inflow across the provinces. The results of this study have several important implications on public policies aimed at attracting foreign direct investments to the provinces in Indonesia. The government must pay more attention to developing and improving the infrastructure, improving the quality of human resources both in formal and non-formal education through training and skills enhancement at productive age (workforce), and determining regional wage through agreement (deliberation) between the regional governments, employers and trade unions. There is also the need for regional governments to facilitate regional exports through export promotion and export training policies for regional entrepreneurs.

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“…Foster (2011) found that FDI in mainland China is heavily skewed in favor of the richest east region, while the west region is the weakest attractor. Liu et al (2012) analyzed the relative importance of the potential determinants of FDI inflows across the four regions of China for the period 2001-2009. The determinants examined were: market size, labor cost, labor quality, physical infrastructure development, telecommunication, and degree of economic openness and government incentives to attract FDI.…”

Section: The Operating Efficiency Of Fdi In Mainland Chinamentioning

confidence: 99%

The Association between the Operating Efficiency of Taiwanese FDI Enterprises in Mainland China and the Investment Performance of Their Parent Companies

Wang¹,

Hsiao²

2014

ChnStd

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This paper uses data envelopment analysis and seemingly unrelated regression estimation model to examine the association between the operating efficiency of Taiwanese FDI enterprises in mainland China and the investment performance of their parent companies. We find that the more capital-intensive Taiwanese FDI enterprises in mainland China have higher operating efficiencies. Enterprises investing in East China area have lower operating efficiency. In addition, higher operating efficiencies of FDI enterprises in mainland China are associated with higher investment performance of the Taiwanese parent companies. The Taiwanese parent companies with greater investment of FDI enterprises in mainland China also have higher investment performance. The Taiwanese parent companies with higher R & D expenditure percentages do not result in improved investment performance because of a lack of spillover to FDI subsidiaries or more uncertain factors. Furthermore, the wholly-owned investment type of a parent company has greater investment performance than joint-venture investment type.

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Determinants of Regional Distribution of FDI Inflows across China’s Four Regions

Cited by 16 publications

References 5 publications

Do the changes in tax incentives encourage direct investment in China by Taiwanese enterprises?

Do the changes in tax incentives encourage direct investment in China by Taiwanese enterprises?

The Determinants of Foreign Direct Investment Across Provinces in Indonesia: The Role of Market Size, Resources, and Competitiveness

The Association between the Operating Efficiency of Taiwanese FDI Enterprises in Mainland China and the Investment Performance of Their Parent Companies

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