Assessing the factors that promote foreign direct investment in China

Abstract

Foreign direct investment is a catalyst for the country’s economic growth, which is beneficial for both the host and home countries. This thesis tries to specify what factors promote foreign direct investment inflows into China and to test whether economic factors can promote foreign direct investment inwards China. Furthermore, this thesis also wants to analyze how location and international trades influence foreign direct investment inflows between 2006 and 2017. This thesis applies multiple regression analysis as the methodology. Furthermore, the result of this thesis display that wages can promote foreign direct investment. Higher average yearly wages can bring more foreign direct investment inflows. Besides, there is no difference in foreign direct investment inwards provinces among coastal areas and non-coastal areas.