Abstract
This paper tries to verify how the establishment of investment promotion agencies (IPAs) affects the decisions of foreign firms regarding their subsequent investment by combining firm-level data from the World Bank's Enterprise Survey with city-level information on (IPAs) in China. After correcting for potential endogeneity problems, the result confirms the IPAs' role in promoting incremental foreign direct investment (FDI) into China. Furthermore, it is shown that Hong Kong, Macau, and Taiwan (HMT) firms are less sensitive to IPAs' efforts in making further investment than are non-HMT foreign firms. In addition, IPAs are found to be more successful in enhancing foreign firms' investment in high-tech than in low-tech industries.
| Original language | English |
|---|---|
| Pages (from-to) | 1325-1336 |
| Number of pages | 12 |
| Journal | Economics Bulletin |
| Volume | 36 |
| Issue number | 3 |
| Publication status | Published - 2016 |
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ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
Cite this
Are investment promotion agencies doing the right thing? Evidence from China. / Ni, Bin.
In: Economics Bulletin, Vol. 36, No. 3, 2016, p. 1325-1336.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Are investment promotion agencies doing the right thing? Evidence from China
AU - Ni, Bin
PY - 2016
Y1 - 2016
N2 - This paper tries to verify how the establishment of investment promotion agencies (IPAs) affects the decisions of foreign firms regarding their subsequent investment by combining firm-level data from the World Bank's Enterprise Survey with city-level information on (IPAs) in China. After correcting for potential endogeneity problems, the result confirms the IPAs' role in promoting incremental foreign direct investment (FDI) into China. Furthermore, it is shown that Hong Kong, Macau, and Taiwan (HMT) firms are less sensitive to IPAs' efforts in making further investment than are non-HMT foreign firms. In addition, IPAs are found to be more successful in enhancing foreign firms' investment in high-tech than in low-tech industries.
AB - This paper tries to verify how the establishment of investment promotion agencies (IPAs) affects the decisions of foreign firms regarding their subsequent investment by combining firm-level data from the World Bank's Enterprise Survey with city-level information on (IPAs) in China. After correcting for potential endogeneity problems, the result confirms the IPAs' role in promoting incremental foreign direct investment (FDI) into China. Furthermore, it is shown that Hong Kong, Macau, and Taiwan (HMT) firms are less sensitive to IPAs' efforts in making further investment than are non-HMT foreign firms. In addition, IPAs are found to be more successful in enhancing foreign firms' investment in high-tech than in low-tech industries.
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M3 - Article
VL - 36
SP - 1325
EP - 1336
JO - Economics Bulletin
JF - Economics Bulletin
SN - 1545-2921
IS - 3
ER -