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Location Determinants of Foreign Direct Investment in Services: Evidence from Chinese provincial-level data

Public Seminar

Thursday 16th January 2014, 4pm to 5pm, Room TW2.10.01B, Tower 2, LSE

Speaker: Dr Feng Yin

Chair: Professor Athar Hussain

China has been the largest recipient of foreign direct investment (FDI) among developing countries since 1992, and has been the second largest recipient in the world since 1993. Operating successfully in this market requires understanding of its uniqueness. China is a vast country with substantial variation across regions, which makes it an ideal platform to study the determinants of FDI location choices. FDI is unevenly distributed across provinces and industries within China. Nowadays, the decline in FDI levels worldwide are partly driven by the impact of the financial and economic crisis, the opening up of the service sector in more countries and the expansion of FDI in the service industries – all point to the need to elicit the determinants of cross border investments which is vital in keeping effectiveness of the FDI policies in the host country. Dr Yin analyses the location determinants of foreign direct investment in services, both theoretically and empirically. It hypothesises four sets of factors as the location determinants of FDI in services basing on the standard theory of FDI. The generalised investment theory on China’s foreign direct investment is tested empirically utilising panel data for 17 provinces and cities from 2000 to 2010.

Dr Feng Yin| is a Visiting Senior Fellow at the LSE Asia Research Centre. She is currently a Professor at Shanghai University. Her research fields include Trade in Services and Foreign Direct Investment.

Professor Athar Hussain| is Director of the LSE Asia Research Centre.

Additional Information

This event is free and open to all with no ticket required. Entry is on a first come, first served basis. Please direct any queries to arc@lse.ac.uk| or call 020 7955 7615.

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