legal

Why Is Foreign Investment in China Concentrated
In the Coastal Areas?
ÍâÓï99 Ò¶¹úºê
It has been widely recognized that the policy in foreign trade and investment in the coastal areas of China is an important factor that contributes to unbalanced economic growth among China¡¯s various regions. Then the obvious question becomes: "Why is it that such foreign investment is not evenly spread across the areas nationwide, and is instead concentrated in the coastal regions?" The concentration of foreign investment in the coastal areas is often attributed to the central government¡¯s regional policies that will first benefit some regions, particularly its preferential treatment in these areas. The following analysis is worth considering.
The comparative advantages are playing an important role in attracting foreign investment. The theory of location explains the incentives of multinationals to invest in foreign countries. It claims that the location of produ...