Industries in Western Region Mismatch MNC Investment Strategies in China
发布: 2008-1-15 11:24 | 作者: CE | 来源: China Economist
YANG Xianming1(杨先明)and ZHANG Zhenghua2(张正华)
1,2 The School of Development Studies, Yunnan University
Editorial note:China is one of the largest destinations of Foreign Direct Investment (FDI), but FDI is unevenly distributed and remains low in the western region. Why is the western region unattractive to foreign investment? In this article, the authors contend that the extent of industrial strategic matching between MNCs and the target region of the host country determine the regional scale and structure of FDI absorption.
I. Foreword
Over the years, Foreign Direct Investment (FDI) in western China has remained low (2%-5% of the country’s total). Why is the western region inferior in terms of attracting FDI? Is it possible for the western region to substantially increase FDI introduction in the Eleventh Five-year Plan Period (2006-2010) and beyond? There are two approaches to the analysis on such questions.