外商直接投资的影响因素——分析中国西部与沿海地区的不同【外文原文】.pdf

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Review of Pacific Basin Financial Markets and Policies
Vol. 4, No. 4 (2001) 479–493

c World Scientific pany
Factors Affecting Foreign Direct Investment —
with an Analysis of the Disparity between the Coastal
and Western Regions of China
Cheng Hsiao
Department of Economics, University of Southern California, USA∗
Victor Gasta˜naga
Economics and Quantitative Analysis, Ernst and Young LLP,
Irvine, California, USA
We review the literature on foreign direct investment (FDI) and provide an empiri-
cal analysis of factors affecting FDI. Conjectures of the disparity of FDI between the
coastal and western regions of China and policy mendations are also made.
Keywords: Foreign direct investment; China; Corruption; Tax; Institutions.
1. Introduction
China, since its opening up, has maintained one of the highest growth rates.
The average growth rate from 1980–96 is %. Even after the 1997 Asian
financial crisis, China’s annual growth rate has been over 7%. China has
also been the no. 1 recipient of foreign direct investment among developing
countries (US$ billion from 1979 to 1998), and stood as no. 2 in the
world, next to the . However, in 1999, for the first time since the im-
plementation of the open-door policy, the amount of actually used foreign
direct investment (FDI) declined in China (Table 1). Although the decline
might be attributed to the 1997 Asian financial crisis since about two-thirds
of FDI originate from 10 Asian countries or regions (Hong Kong, Macau,
Taiwan, Japan, South Korea, Thailand, Philippines, Malaysia, Singapore
and Indonesia), the decline in contracted amount has begun well before the

Also at: Finance and Economics, School of Business Management, Hong Kong University
of Science and Technology, Kowloon, Hong Kong.

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480 • Cheng Hsiao & Victor Gasta˜naga

Table 1. Actually Used Value of