Just like it?: Preferences of Chinese provincial governments in promoting foreign direct investment
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2015
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Melbourne Authors
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School of Geography
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Masters Coursework thesis
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Foreign Direct Investment brings not only money but also market, advanced technology and managerial experience to host countries, which leads governments competing to attract this investment. This thesis aims at examining priorities and intentions of two provincial governments-- Guangdong and Jiangsu-- in promoting FDI from 2003 to 2014 against the background of policy framework made by the central government in China. To this end, documents published by the central and two provincial governments are collected for the purpose of calculating proportions of documents regarding FDI on the theme of industries, types of firms and regional distribution, and analysing the discourse in the government documents.
Results show that all of three governments viewed promoting FDI flowing into particular industries as a priority, though some variation in detailed preferences appears between these government. For the central government, regional distributions of FDI are also frequently mentioned; in contrast, Guangdong government propels for attracting FDI with specific types of firms. In terms of specific themes, industrial restructuring seems to sustain high priorities of FDI in industries. As for regional distribution of FDI, provincial governments focus on regional differential development rather than regional coordinated development. Besides industrial and regional attributes, only Guangdong government prioritize FDI with specific types of firms for improving the quality of foreign enterprises in its jurisdiction.
Overall, this study shows that two provincial governments endeavour to maximize their benefits while playing within the boundary set by the central government. Investigating how two provincial governments prioritize three attributes of FDI in promoting FDI contribute to the central-local relations in China. Besides contributing to the central-local relations from the perspective of promotion of FDI, this study also provides insights to see provincial governments' priorities and intentions in attracting FDI by analysing the content of documents.
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FDI, provincial governments, government documents, preferences