FDI Environment in China: A Critical Analysis

Fernandez, M, Alnuaimi, A and Joseph, R (2020) FDI Environment in China: A Critical Analysis. International Journal of Financial Research, 11 (5). p. 238. ISSN 1923-4023

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Investors prefer to invest in assets and places that offer attractive returns and are relatively less risky. China is one of the countries with the highest economic growth and is trying to attract investors from all corners of the world to invest and participate in the growth of China. The main objectives of this study are to evaluate the position of China as a destination for FDI, the factors that attract FDI into China, and the factors that hinder the flow of FDI into China. It also proposes to examine whether the attractiveness of China is increasing or is it on the decline and the rationale behind it. This study is based on secondary data, covers a period of five years, and analysis various determinants of FDI. The study reveals that China has the potential, political stability, and an organized financial system, but its market has started to shrink as the population growth is declining, the labor cost is increasing, labor market efficiency is decreasing, economic growth and infrastructure developments are decelerating, and corporate and individual tax rates are high.

Affiliation: Skyline University College
SUC Author(s): Fernandez, M ORCID: https://orcid.org/0000-0003-0458-8879 and Joseph, R
All Author(s): Fernandez, M, Alnuaimi, A and Joseph, R
Item Type: Article
Uncontrolled Keywords: foreign direct investments, economic growth, infrastructure, market size
Subjects: A Business and Management > AH Finance
Divisions: Skyline University College > School of Business
Depositing User: Mr Veeramani Rasu
Date Deposited: 11 Feb 2022 16:01
Last Modified: 11 Feb 2022 16:01
URI: http://research.skylineuniversity.ac.ae/id/eprint/92
Publisher URL: https://doi.org/10.5430/ijfr.v11n5p238
Publisher OA policy: https://v2.sherpa.ac.uk/id/publication/18227
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