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An empirical study on factors influencing foreign direct investment to China

This article constructed various indices to reflect the economical development of China. The indices were based on the direct investment Panel Data of major capital export countries from 1991 to 2009. A panel data model was employed to study empirically factors influencing the influx of foreign direct investment during the reforming and opening-up period of China. The comparative advantage, traits and present issue for China to attract foreign direct investment is summarized in the end.