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2010•Journal of Changzhou Institute of TechnologyRequires access

An Empirical Analysis of FDI Type Shift

Han Gang

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Abstract

On the basis of literature review,this paper analyzes the relationship between FDI and market size,factor cost and investment environment through the related data of FDI amount into China during 1992—2008 from the major countries or regions,such as Japan,America,etc..The results show that FDI in China has both the characteristics of vertical FDI and horizontal FDI,and the characteristics of horizontal FDI seem more prominent.FDI in China is shifting from vertical FDI to horizontal FDI.Based on the analysis,some suggestions are proposed on making policy.

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What this paper is about

On the basis of literature review,this paper analyzes the relationship between FDI and market size,factor cost and investment environment through the related data of FDI amount into China during 1992—2008 from the major countries or regions,such as Japan,America,etc..The results show that FDI in China has both the characteristics of vertical FDI and horizontal FDI,and the characteristics of horizontal FDI seem more prominent.FDI in China is shifting from vertical FDI to horizontal FDI.Based on the analysis,some suggestions are proposed on making policy.

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Available abstract

On the basis of literature review,this paper analyzes the relationship between FDI and market size,factor cost and investment environment through the related data of FDI amount into China during 1992—2008 from the major countries or regions,such as Japan,America,etc..The results show that FDI in China has both the characteristics of vertical FDI and horizontal FDI,and the characteristics of horizontal FDI seem more prominent.FDI in China is shifting from vertical FDI to horizontal FDI.Based on the analysis,some suggestions are proposed on making policy.

Key concepts: Foreign direct investment, China, Horizontal and vertical, International economics, Economic geography, Economics, International trade, Business

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