| In 1978, when China opened its economy to the outside world, there was little foreign direct investment. By the end of June of 2005, the contractual value and realized value of FDI in China have reached 1182 and 590 billion USD. The fascinating developments in China's globalization and economic growth have provided us with a tempting opportunity to identify the determinants of FDI in China.;The goal of this thesis is to use econometric methods to analyze the determinants of FDI in China. We use the data from four largest FDI investors in China over 21 years to take a panel data approach. With two dynamic panel data estimation methods, we are able to identify how the determinants are acting together to influence the FDI levels. The thesis emphasizes the use of econometric models which are believed by the author to be essential in analyzing FDI determinants. |
