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An empirical study of influencing factors of absorbing FDI in Henan

Huaiyao Li, Dongmei Li

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Abstract

By use of the grey correlation analysis method, this paper comparatively analyzes the correlation degree of influencing factors of absorbing FDI in Henan between two periods (1990–1999 and 2000–2009). The results of this study indicate that the opening level has been the primary factor at present; the secondary industry, infrastructure and market scale are the traditional influencing factors; the influence degree of labor cost is rising, and the importance of talent superiority is appearing gradually. Finally, the study put forward some suggestions for reference based on the results.

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What this paper is about

By use of the grey correlation analysis method, this paper comparatively analyzes the correlation degree of influencing factors of absorbing FDI in Henan between two periods (1990–1999 and 2000–2009). The results of this study indicate that the opening level has been the primary factor at present; the secondary industry, infrastructure and market scale are the traditional influencing factors; the influence degree of labor cost is rising, and the importance of talent superiority is appearing gradually. Finally, the study put forward some suggestions for reference based on the results.

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Available abstract

By use of the grey correlation analysis method, this paper comparatively analyzes the correlation degree of influencing factors of absorbing FDI in Henan between two periods (1990–1999 and 2000–2009). The results of this study indicate that the opening level has been the primary factor at present; the secondary industry, infrastructure and market scale are the traditional influencing factors; the influence degree of labor cost is rising, and the importance of talent superiority is appearing gradually. Finally, the study put forward some suggestions for reference based on the results.

Key concepts: Degree (music), Scale (ratio), Empirical research, Foreign direct investment, Correlation, Industrial organization, Econometrics, Business

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