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Dynamic Research on the Determinants of FDI Location for the Cities inYangtze River Delta: from the Spatial Econometrical Perspective |
WEN Yuyuan |
Institute of Regional&Urban Economics, School of Economics, Renmin University of China |
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Abstract Taking 25 cities at feature-level and above in Yangtze River delta as the study objectives, FDI location determinants during 1991-2008 are analyzed by employing spatial econometric method. The findings are as follow: (1) FDI location determinants and their influence have changed dynamically for the cities in Yangtze River Delta area in the past nearly 20 years. Some general determinants such as market size, urbanization level, industry development, wage cost and distance to Shanghai, become insignificant or are getting weaker and weaker. (2) FDI agglomeration, wage efficiency and infrastructure are important determining factors and become more and more important temporally. (3) Neighborly spatial association effect plays a critical role in FDI location decision for all the sampling periods, which shows that a city’s FDI inflow is influenced by its neighboring cities’ FDI inflow as well as its own location factors. The findings have important policy implications for the cities in Yang
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Received: 03 November 2010
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Corresponding Authors:
WEN Yuyuan
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