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Home Country Tariffs and FDI in China

Ahrén, Maria LU (2012) NEKN01 20121
Department of Economics
Abstract
To date China has become one of the largest receivers of foreign direct investment (FDI) and this FDI has had an important role in China’s economic growth. It is therefore important to study the determinants of FDI in China. This paper evaluates if general applied tariffs on Chinese imports in China’s trading partners influence the amount of FDI to China. In previous studies this approach has not been applied as the literature mainly looks at tariffs in China as a FDI determinant and not tariffs in investing countries. The study contains of two parts, one quantitative study, where panel data is applied for FDI stock and other economic indicators, and one qualitative study, where managers for FDI receiving firms in China are interviewed.... (More)
To date China has become one of the largest receivers of foreign direct investment (FDI) and this FDI has had an important role in China’s economic growth. It is therefore important to study the determinants of FDI in China. This paper evaluates if general applied tariffs on Chinese imports in China’s trading partners influence the amount of FDI to China. In previous studies this approach has not been applied as the literature mainly looks at tariffs in China as a FDI determinant and not tariffs in investing countries. The study contains of two parts, one quantitative study, where panel data is applied for FDI stock and other economic indicators, and one qualitative study, where managers for FDI receiving firms in China are interviewed. The quantitative study found that general tariffs in investing countries on Chinese imports have a weak correlation with FDI stock in China. The interviews in the qualitative study reject the correlation as well. In conclusion, the concerned tariffs do not determine the FDI stock in China. However, this study also found that non-tariff barriers, such as anti-dumping duties and other regulations, influence the investments and productivity of FDI receiving firms in China. (Less)
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author
Ahrén, Maria LU
supervisor
organization
course
NEKN01 20121
year
type
H1 - Master's Degree (One Year)
subject
keywords
China FDI, tariffs, imports, trade barriers, FDI determinants
language
English
id
3055373
date added to LUP
2012-09-27 11:21:01
date last changed
2012-09-27 11:21:01
@misc{3055373,
  abstract     = {To date China has become one of the largest receivers of foreign direct investment (FDI) and this FDI has had an important role in China’s economic growth. It is therefore important to study the determinants of FDI in China. This paper evaluates if general applied tariffs on Chinese imports in China’s trading partners influence the amount of FDI to China. In previous studies this approach has not been applied as the literature mainly looks at tariffs in China as a FDI determinant and not tariffs in investing countries. The study contains of two parts, one quantitative study, where panel data is applied for FDI stock and other economic indicators, and one qualitative study, where managers for FDI receiving firms in China are interviewed. The quantitative study found that general tariffs in investing countries on Chinese imports have a weak correlation with FDI stock in China. The interviews in the qualitative study reject the correlation as well. In conclusion, the concerned tariffs do not determine the FDI stock in China. However, this study also found that non-tariff barriers, such as anti-dumping duties and other regulations, influence the investments and productivity of FDI receiving firms in China.},
  author       = {Ahrén, Maria},
  keyword      = {China FDI,tariffs,imports,trade barriers,FDI determinants},
  language     = {eng},
  note         = {Student Paper},
  title        = {Home Country Tariffs and FDI in China},
  year         = {2012},
}