EVOLUTIONARY TREND OF FOREIGN INVESTMENT IN CHINA: A COMBINED DECOMPOSITION AND TRANSITIONAL DYNAMICS APPROACH

This paper examines the pattern and evolution trend of foreign investment in China through combining decomposition analysis and framework of transitional dynamics. It is recognized that inter-regional disparity contributes the most to China’s disparity in foreign investment. Stochastic kernel analyses are then performed for the country and the economic zones regarding the foreign investment trend. It is concluded that convergence of foreign...