This study examines the factors that affect the choice of location for foreign direct investment (FDI) in China. We identify three groups of factors that may affect the location choice by foreign firms: agglomeration economies, infrastructure, and institutional changes resulting from the...

China has achieved phenomenal economic growth in an institutional environment that defies conventional economic rationales. Researchers offer different theories to explain this puzzle. But so far, due to the lack of data, little effort has been made to test these theories at the firm level. We...