Foreign Direct Investment and Economic Development in Guangdong: Problems and Prospects

Foreign direct investment has made an important contribution to Guangdong's impressive economic growth in the past 18 years and to its current leading position in China. Now, without preferential policies and some other advantages, Guangdong is facing more difficulties than before to attract FDI. However, with the achieved economic progress, better infrastructure, a more educated and skilled labour force, well-developed economic integration with Hong Kong and the close ties with overseas Chinese, if the provincial government's new policies of attracting FDI are carried out effectively, Guangdong will be able to keep its top position in China for hosting FDI and maintaining rapid economic growth for at least another decade.