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The Main Factors Contributing to China’s FDI
- 1 Economics, University of Bristol, Bristol, BS8 1TH, United Kingdom
- 2 School of Business and economics, Universiti Putra Malaysia（UPM）, Kuala Lumpur, 43400, Malaysia
- 3 Economics, University of Macau, Macau, 999078, China
- 4 Applied Economics， Macau University of science and technology, Macau, 999078, China
* Author to whom correspondence should be addressed.
Abstract
According to the data recently released by OECD, the world's foreign direct investment showed a significant decline of 42% in 2020. However, China's FDI rose against the trend, becoming the world's largest foreign capital inflow country for the first time, and surpassing the United States. This paper uses the data of the Chinese National Bureau of Statistics and Wind data to analyze the main factors contributing to China's FDI. The results show that in the overall multiple linear regression, only the ratio of exports and imports has a negative correlation with FDI, the ratio of foreign trade to GDP, population, and the number of international firms have positive and the trade war between US and China and Covid-19 pandemic are not significant for FDI, the coefficient of two variables is both negative. For the multiple linear regression by year, the significant influencing factors in different years are different and show volatility.
Keywords
GDP, Covid-19, International firm, Population, Import and export ratio, FDI, Trade war
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Cite this article
Gao,Z.;Li,X.;Mo,Y.;Wang,J. (2023). The Main Factors Contributing to China’s FDI. Advances in Economics, Management and Political Sciences,3,147-153.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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Volume title: Proceedings of the 6th International Conference on Economic Management and Green Development (ICEMGD 2022), Part Ⅰ
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