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Australia's direct investment in China: trends and determinants.
- Article from:
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Economic Papers - Economic Society of Australia
- Article date:
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March 1, 2008
- Author:
- Ma, Zihui; Yang, Ruilong; Zhang, Yin
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Copyright informationCOPYRIGHT 2008 Economic Society of Australia. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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China has been the largest foreign direct investment recipient among developing countries, and Australia's direct investment in China is also growing steadily. This article investigates the trends and determinants of Australia's direct investment in China. Evidence presented in this paper indicates that Australia's direct investment in China is above the equilibrium level and that its regional distribution is correlated with economic and policy factors.
Keywords: FDI, gravity model, sectoral distribution, provincial FDI
JEL Codes: F21, F23
1 Introduction
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