Publication Type

Journal Article

Version

acceptedVersion

Publication Date

8-2018

Abstract

Perspectives drawn from the economic geography literature are increasingly used to generate insights into locational issues in international business. In this paper, we seek to integrate these literatures further by investigating the locational determinants of foreign direct investment (FDI) into peripheral cities within an emerging economy. Peripheral cities in emerging economies are attracting a growing proportion of global FDI flows, but the international business literature lacks a framework for understanding subnational determinants of FDI, particularly into non-core locations. We draw on the core-periphery model to build and test theory on how spatial interdependencies between subnational locations impact on the distribution of FDI inflows into a large and heterogeneous country China. Our results show that whilst peripheral cities tend to have a negative effect on FDI, this effect is positively moderated by proximity to core cities. The results highlight the importance of considering interactions between place and space when investigating locational issues in international business.

Keywords

FDI, Cities, Core-periphery, Distance, China

Discipline

Finance and Financial Management | International Business | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

International Business Review

Volume

27

Issue

4

First Page

803

Last Page

813

ISSN

0969-5931

Identifier

10.1016/j.ibusrev.2018.01.004

Publisher

Elsevier

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1016/j.ibusrev.2018.01.004

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