Open AccessInvestasi Asing Melimpah di Tengah Institusi Yang Buruk di Tiongkok
Author(s) -
Puguh Toko Arisanto
Publication year - 2020
Publication title -
nation state/nation state
Language(s) - English
Resource type - Journals
eISSN - 2621-735X
pISSN - 2620-391X
DOI - 10.24076/nsjis.2020v3i1.37
Subject(s) - china , foreign direct investment , institution , corporate governance , business , inflow , international economics , economics , international trade , economic geography , political science , geography , macroeconomics , finance , law , meteorology
China has become the world's second largest FDI destination in recent years, despite its poor institution status. The success of China seems to undermine the existing theoretical paradigm that good institutions are significantly determinant factors to attract FDI. This paper aims to explain three locational advantages possessed by China which are domestic market, relatively low wages and broad global market access as attracting factors to FDI inflow amid poor institutions. Furthermore, this paper will explain correlation of FDI with poor institutions in China from some elements of governance.