The Current Status and Prospects for Attracting Foreign Direct Investment in the Chinese Economy
The article is aimed at defining the current status and prospects for attracting foreign direct investment in the Chinese economy. The dynamics of China’s inflow and outflow of foreign direct investment are provided, the main countries investing in the Chinese economy are specified. It is determined...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Research Centre of Industrial Problems of Development of NAS of Ukraine
2019-12-01
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| Series: | Bìznes Inform |
| Subjects: | |
| Online Access: | https://www.business-inform.net/export_pdf/business-inform-2019-12_0-pages-45_50.pdf |
| _version_ | 1811327947115593728 |
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| author | Makarchuk Kateryna O. Shuba Maryna V. |
| author_facet | Makarchuk Kateryna O. Shuba Maryna V. |
| author_sort | Makarchuk Kateryna O. |
| collection | DOAJ |
| description | The article is aimed at defining the current status and prospects for attracting foreign direct investment in the Chinese economy. The dynamics of China’s inflow and outflow of foreign direct investment are provided, the main countries investing in the Chinese economy are specified. It is determined that the amount of foreign direct investment in the Chinese economy has been increasing annually during the researched period. This is facilitated by the openness of the economy, the rapid development of the high-tech sector, liberalization, creation of free trade zones. The legal regulation of investment activities and attracting foreign capital to PRC is considered. The government’s favorable tax policy, including the preferential regime of special economic zones, has been defined as an important factor in increasing the PRC investment attractiveness (out of 5400 special economic zones in the world more than 4000 are in Asian developing countries, and China holds the largest number of them – more than 2500). China’s positions in investment attractiveness ratings, such as the rating of ease in doing business, the index of economic freedom, the index of regulatory restrictions for foreign direct investment, the index of investor confidence, are analyzed. The relationship between China’s GDP and the inflow of foreign direct investment into China has been defined using correlation analysis. The results of the calculation showed that the correlation ratio is 0,54, which indicates that there is but a weak link between the indicators researched. The main advantages and risks of China’s investment climate are systematized. It is determined that, despite China’s significant investment attractiveness, there are many investment risks, but the Chinese government continues reforms directed towards improving the investment climate of the country. |
| first_indexed | 2024-04-13T15:16:50Z |
| format | Article |
| id | doaj.art-7a73d06ed71946999ccc23e07cca2b98 |
| institution | Directory Open Access Journal |
| issn | 2222-4459 2311-116X |
| language | English |
| last_indexed | 2024-04-13T15:16:50Z |
| publishDate | 2019-12-01 |
| publisher | Research Centre of Industrial Problems of Development of NAS of Ukraine |
| record_format | Article |
| series | Bìznes Inform |
| spelling | doaj.art-7a73d06ed71946999ccc23e07cca2b982022-12-22T02:41:50ZengResearch Centre of Industrial Problems of Development of NAS of UkraineBìznes Inform2222-44592311-116X2019-12-0112503455010.32983/2222-4459-2019-12-45-50The Current Status and Prospects for Attracting Foreign Direct Investment in the Chinese EconomyMakarchuk Kateryna O.0https://orcid.org/0000-0002-7712-3071Shuba Maryna V.1https://orcid.org/0000-0003-2581-6914V. N. Karazin Kharkiv National UniversityV. N. Karazin Kharkiv National UniversityThe article is aimed at defining the current status and prospects for attracting foreign direct investment in the Chinese economy. The dynamics of China’s inflow and outflow of foreign direct investment are provided, the main countries investing in the Chinese economy are specified. It is determined that the amount of foreign direct investment in the Chinese economy has been increasing annually during the researched period. This is facilitated by the openness of the economy, the rapid development of the high-tech sector, liberalization, creation of free trade zones. The legal regulation of investment activities and attracting foreign capital to PRC is considered. The government’s favorable tax policy, including the preferential regime of special economic zones, has been defined as an important factor in increasing the PRC investment attractiveness (out of 5400 special economic zones in the world more than 4000 are in Asian developing countries, and China holds the largest number of them – more than 2500). China’s positions in investment attractiveness ratings, such as the rating of ease in doing business, the index of economic freedom, the index of regulatory restrictions for foreign direct investment, the index of investor confidence, are analyzed. The relationship between China’s GDP and the inflow of foreign direct investment into China has been defined using correlation analysis. The results of the calculation showed that the correlation ratio is 0,54, which indicates that there is but a weak link between the indicators researched. The main advantages and risks of China’s investment climate are systematized. It is determined that, despite China’s significant investment attractiveness, there are many investment risks, but the Chinese government continues reforms directed towards improving the investment climate of the country.https://www.business-inform.net/export_pdf/business-inform-2019-12_0-pages-45_50.pdfforeign direct investmentinvestment climateinvestment attractivenesschina |
| spellingShingle | Makarchuk Kateryna O. Shuba Maryna V. The Current Status and Prospects for Attracting Foreign Direct Investment in the Chinese Economy Bìznes Inform foreign direct investment investment climate investment attractiveness china |
| title | The Current Status and Prospects for Attracting Foreign Direct Investment in the Chinese Economy |
| title_full | The Current Status and Prospects for Attracting Foreign Direct Investment in the Chinese Economy |
| title_fullStr | The Current Status and Prospects for Attracting Foreign Direct Investment in the Chinese Economy |
| title_full_unstemmed | The Current Status and Prospects for Attracting Foreign Direct Investment in the Chinese Economy |
| title_short | The Current Status and Prospects for Attracting Foreign Direct Investment in the Chinese Economy |
| title_sort | current status and prospects for attracting foreign direct investment in the chinese economy |
| topic | foreign direct investment investment climate investment attractiveness china |
| url | https://www.business-inform.net/export_pdf/business-inform-2019-12_0-pages-45_50.pdf |
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