Determinants of export intensity and FDI presence: case of manufacturing industries of Guangdong Province, the People's Republic of China
by Lihong Yun
International Journal of Logistics Systems and Management (IJLSM), Vol. 2, No. 3, 2006

Abstract: This paper investigates of the determinants of export intensity and of FDI presence among the manufacturing industries from the Guangdong Province of the People's Republic of China. The study is based on a three-digit level set of panel data collected for 1998–2002 from 158 manufacturing industries. The results indicate that export-intensity and FDI-presence are high in industries with low physical capital intensity, low labour costs and low R&D intensity. Industries with less state-participation or high FDI-presence are likely to enjoy higher levels of export intensity. They indicate further that the FDI emanating from non-dragon economies (those other than Hong Kong, Macao and Taiwan) and low labour costs are fundamental and foremost for sustained export performance.

Online publication date: Wed, 10-May-2006

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