We empirically investigate the factors that drive the uneven regional distribution of foreign direct investment (FDI) across Chinese provinces from 1995 to 2006. We first perform a factor analysis to summarize information embodied in around 40 variables and derive four FDI determinants:...

Although at the country and industry level there is much evidence on the importance of access to services for exports and participation in global value chains, such evidence is largely absent at the firm level. In this paper we use a newly constructed dataset that connects city-level access to...

We introduce a stylised model where a risk-averse foreign investor teaming up with a local partner is concerned about background political risk affecting public goods provision (permits, etc.) by a local government. We show that the risk-averse principal as a residual claimant leaves a larger...