Place, space, and foreign direct investment into peripheral cities

McDonald, Conor, Buckley, Peter J, Voss, Hinrich, Cross, Adam R and Chen, Liang (2018) Place, space, and foreign direct investment into peripheral cities. International Business Review, 27 (45). pp. 803-813. ISSN 0969-5931

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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.

Item Type: Article
Schools and Departments: University of Sussex Business School > Strategy and Marketing
Research Centres and Groups: International Business
Depositing User: Liang Chen
Date Deposited: 12 Feb 2018 10:21
Last Modified: 04 Nov 2019 15:29

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