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            The Local Financing of FDI in the Host Country and Its Path Dependence—Logic Evidences From China

            王升 , Wang Sheng and Mao Yajuan




            So far, the literature is scarce regarding the local financing of FDI and its impacts on a host country’s economic system. In this paper, we find the logic and empirical evidences of the local financing in China, the world’s largest recipient of FDI. We also conclude that the local financing of FDI can explain why foreign investors intend to give up higher investment return and keep expanding their investment in China. Additionally, three primary paths of local financing are discussed in this paper, which foreign investors rely on to implicitly utilize domestic funds. Moreover, the conglomeration of potential risks has been caused due to the path dependence of local financing, which is a bad sign to China’s financial safety.

            【免責聲明】以下全部內容由[王升]上傳于[2007年10月08日 19時28分12秒],版權歸原創者所有。本文僅代表作者本人觀點,與本網站無關。本網站對文中陳述、觀點判斷保持中立,不對所包含內容的準確性、可靠性或完整性提供任何明示或暗示的保證。請讀者僅作參考,并請自行承擔全部責任。


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