Monday, October 01, 2007

China's Alleged Pro-FDI Bias

The hypothesis of the existence of such pro-FDI bais in China originated from MIT professor Huang Yasheng.

Now some reseachers garner evidence indicating that such a bias does not exist:

"Recent arguments that China's FDI inflow is inefficiently large because weak institutions deter domestic investment while special initiatives attract FDI are thus either unsupported or not unique to China."

Read the paper here.

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