Determinants of foreign direct investment inflows to China: A Gravity Model Approach
|Author:||Bc. Michal Řezáč|
|Year:||2014 - winter|
|Leaders:|| Ing. Vilém Semerák M.A., Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||The main ambition of this thesis is the analysis of factors determining Chinese foreign direct investment
(FDI) inflows with special focus on evaluating of the role of Chinese institutional framework in this
process. Empirical part of the thesis employs random effects method as the main tool for estimation of
FDI gravity model. The data set consists of observations of 189 source countries over the 1995-2011
period. The results suggest relatively low sensitivity of the source countries to the institutional factors.
Besides the traditional FDI determinants such as gravity variables or cultural ties, the quality of property
rights protection, tax burden imposed by government, and investment flow restrictions are found out to
be important factors of Chinese FDI inflow