Assessing the factors that promote foreign direct investment in China

Abstract

This paper assesses the factors that promote Foreign direct investment in China. The development of foreign trade has played an important role in driving China's economic growth, and foreign direct investment has played an important role in promoting China's import and export growth. By analyzing the FDI data of China from 1988 to 2018, this paper explores the important factors affecting the distribution of FDI in China. I chose four variables as my research object. The data selected in this paper is from the National Bureau of Statistics. By using excel, we perform descriptive statistics on the sample data and perform OLS regression analysis on this basis. We also find that the number of labor and GDP have a positive impact on the FDI. The result we find do supporting the present evidence.