Unlocking China's Economic Potential: Factors Driving Foreign Investment Inequality
The article explores what factors influence foreign investment in different parts of China. By studying data from 1995-2010, the researchers found that things like market size, infrastructure, trade openness, and special economic zones attract more foreign investment. On the other hand, high labor costs can deter foreign investors. To bring in more foreign investment, China needs to open up its market more to international companies and offer tax incentives and better capital markets.