The University of Southampton
University of Southampton Institutional Repository

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

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

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.

FDI, Location determinants, Producer services sector
0144-3585
Gao, Runda
732637f0-c02d-4a59-805b-c70417159b69
De Vita, Glauco
002fc6bf-e5ed-4a13-8993-0ce5e1fc2005
Luo, Yun
2ac0f228-573d-43e7-b309-1529b6f3d174
Begley, Jason
6abbe11e-ffd4-4e59-b6e3-c875268a3c6d
Gao, Runda
732637f0-c02d-4a59-805b-c70417159b69
De Vita, Glauco
002fc6bf-e5ed-4a13-8993-0ce5e1fc2005
Luo, Yun
2ac0f228-573d-43e7-b309-1529b6f3d174
Begley, Jason
6abbe11e-ffd4-4e59-b6e3-c875268a3c6d

Gao, Runda, De Vita, Glauco, Luo, Yun and Begley, Jason (2020) Determinants of FDI in producer services: evidence from Chinese aggregate and sub-sectoral data. Journal of Economic Studies. (doi:10.1108/JES-07-2020-0355).

Record type: Article

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.

Other
PDF_Proof - Accepted Manuscript
Download (579kB)

More information

Accepted/In Press date: 6 August 2020
Published date: 26 August 2020
Keywords: FDI, Location determinants, Producer services sector

Identifiers

Local EPrints ID: 443230
URI: http://eprints.soton.ac.uk/id/eprint/443230
ISSN: 0144-3585
PURE UUID: 2d6025ad-84d7-4d70-9c14-d76536621d89
ORCID for Yun Luo: ORCID iD orcid.org/0000-0001-8409-366X

Catalogue record

Date deposited: 18 Aug 2020 16:30
Last modified: 28 Apr 2022 06:32

Export record

Altmetrics

Contributors

Author: Runda Gao
Author: Glauco De Vita
Author: Yun Luo ORCID iD
Author: Jason Begley

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×