Title: The effect of the internet on FDI in East and Middle/West China

Authors: Minchun Han, Jun Niu

Addresses: School of Economics and Management, Wuhan University, Wuhan 430072, PRC; School of Economics, Huazhong University of Science & Technology, Wuhan 430074, PRC. ' School of Management, Gansu Political Science and Law Institute, Lanzhou 730070, PRC

Abstract: It is increasingly recognised that the level of internet infrastructure may have significant effect on Foreign Direct Investment (FDI). This paper studies the effect of internet on FDI in East and Middle/West China. Using a gravity model of FDI and data from year 2000 among provinces of different regions in China and main source countries, we found that the internet has statistically significant effect on the volume of FDI in East China, but no significant effect on Middle/West China.

Keywords: foreign direct investment; FDI; internet infrastructure; China.

DOI: 10.1504/IJNVO.2010.032907

International Journal of Networking and Virtual Organisations, 2010 Vol.7 No.4, pp.297 - 307

Published online: 05 May 2010 *

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