FDI In China: What We Know And What We Need To Study Next

Abstract

Executive Overview China is the world's fastest growing economy and is the focus of extensive discussion by both academics and businesspeople. One of the principal drivers of China's growth is foreign direct investment (FDI) into the country. China has pursued a historically unique FDI policy that has long-term implications for both Chinese and international businesses. The largest portion of China-related research is focused on FDI in China. This paper looks at what we know from this research and where future research about China and FDI needs to move. This paper will allow academics to build that knowledge of China and FDI into teaching and into a foundation for understanding this dynamic economy. Such an understanding of FDI will also help academics whose expertise is not China to better understand what is unique about China and its economy and lay the foundation for understanding other emerging economies. Using a process framework this paper examines various issues related to FDI in China, including t...