Factors Influencing Location Selection in Inward Foreign Direct Investment to China

This paper examines the key factors influencing location selection for inflow FDIs to Mainland China. It investigates the factors affecting FDIs in three regions, namely western region, middle region and eastern region of China. The key factors affecting FDI location selection are presented and discussed. It is found that major factors influencing FDI location selection are the following: market, infrastructure, labour force, agglomeration effect, and policy and culture.