Determinants of FDI Inflow in China
3.1 Chinese Economy- Size, Growth and Prospects
3.2 Natural Resources
3.3 Labor
3.4 Infrastructure – Technological, Physical And Financial
3.5 Openness to foreign trade and easy accessibility to foreign markets
3.6 Regulatory Framework
3.7 Economic Policy Coherence
3.8 Investment Protection and Promotion
3.9 Tax
3.10 Distance and Exchange Rate
4. Conclusion
The purpose of this study is to highlight the most important determinants of FDI inflow in China and found that large size market, growth in Chinese economy, future prospects about Chinese economy, waste natural resources, cheap labor, quality infrastructure, open trade policies, regulatory reforms, easy access to foreign market, foreign investors protection, favorable tax policies and depreciation of Yuan have been the main factors that attract FDI inflow in China. This study will provide the future researchers the basic information about important factors attracting FDI in China and assist them to conduct detailed study separately on individual factors.
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