Agglomeration economies or comparative advantages matter in China

Ngo Quang Vinh

ISBN 10: 3659682284 / ISBN 13: 9783659682285

Edité par LAP Lambert Academic Publishing Feb 2015, 2015

A propos de cet article

Neuware -Coast-interior gap in attracting foreign direct investment (FDI) in China has been seen increasing; however, the diffusion trend across provinces has become more obvious. The determinants of regional distribution of FDI among Chinese provinces have been examined using data in 28 Chinese provinces from 1985 to 2007. Alternative theories divided determinants explaining FDI location into three subgroups: agglomeration economies, comparative advantage and location tournaments. The results provide support for the agglomeration hypothesis and some determinants in comparative advantages. Among four proxies for comparative advantages, wage and GDP per head have expected effect on FDI while the effect of infrastructure is statistically insignificant. Surprisingly, human capital shows a puzzling opposite sign at high significant level. Tax rate, a proxy for location tournament, shows a significant and negative effect on FDI. Tax incentives seem to magnify the role of agglomeration economies, but the effect of GDP per capita is diminished when tax is included in the regression.Books on Demand GmbH, Überseering 33, 22297 Hamburg 72 pp. Englisch.

N° de réf. du vendeur 9783659682285

Détails bibliographiques

• Titre: Agglomeration economies or comparative advantages matter in China
• Éditeur: LAP Lambert Academic Publishing Feb 2015
• Date de parution: 2015
• Langue: anglais
• ISBN à 10 chiffres: 3659682284
• ISBN à 13 chiffres: 9783659682285
• Reliure: Taschenbuch
• État de l'article: Neu
• Dimensions: 220 L x 150 H x 5 P (en millimètres) 220 millimètres de largeur par 150 millimètres de hauteur par 5 millimètres de profondeur
• Poids: 125 grammes

A propos de ce titre

Synopsis

Coast-interior gap in attracting foreign direct investment (FDI) in China has been seen increasing; however, the diffusion trend across provinces has become more obvious. The determinants of regional distribution of FDI among Chinese provinces have been examined using data in 28 Chinese provinces from 1985 to 2007. Alternative theories divided determinants explaining FDI location into three subgroups: agglomeration economies, comparative advantage and location tournaments. The results provide support for the agglomeration hypothesis and some determinants in comparative advantages. Among four proxies for comparative advantages, wage and GDP per head have expected effect on FDI while the effect of infrastructure is statistically insignificant. Surprisingly, human capital shows a puzzling opposite sign at high significant level. Tax rate, a proxy for location tournament, shows a significant and negative effect on FDI. Tax incentives seem to magnify the role of agglomeration economies, but the effect of GDP per capita is diminished when tax is included in the regression.

À propos de l?auteur

Mr. Ngo Quang Vinh is a National Project Officer in the International Labour Organization (ILO), a specialized agency of the United Nations, in Viet Nam. He used to be a lecturer at Foreign Trade University in Hanoi for 10 years and a researcher in the National University of Singapore for over 4 years.