The Impact of Service Agglomeration on Differences of FDI in China: Evidence from Chinese Cities
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| Title | The Impact of Service Agglomeration on Differences of FDI in China: Evidence from Chinese Cities
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| Author | Sun Puyang, Han Shuai and Jin Shujing |
| Organization | Sun Puyang, Han Shuai and Jin Shujing |
| Email | puyangsun@nankai.edu.cn;hanshuai2006@163.com;jshujing@163.com |
| Key Words | Service Agglomeration; FDI; Region Difference |
| Abstract | This paper investigates the effects of service agglomeration on FDI inflow in China based on the new economic geography, while the 288 city data is used in the period of 2003 to 2008. Being a consideration with roles of agglomeration in manufacture and foreign firms’ agglomeration, this paper pays more attention to the service agglomeration. We subdivided the service sector into producer, consumer and public service, and investigate their influence on FDI inflow. We test both within and across cities agglomeration effect on FDI. The results suggest that foreign firm and manufactures agglomeration have negative impact on FDI. However, the service agglomeration shows positive and significant impact on FDI inflow. The producer and public service agglomeration shows positive impact on FDI inflow more significantly. The results also suggest there are competitions between neighboring cities on attracting FDI. |
| Serial Number | WP157 |
| Time | 2012-02-14 |
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