The Effect of the Internet on FDI in the East and Middle/West of China

摘要

It is increasingly recognized that the level of Internet infrastructure may have significant effect on FDI. This paper studies the effect of Internet on FDI in East and Middle/West China. Using a gravity model of FDI and data from 2000 among provinces of different regions in China and main source countries, we find that the Internet has statistically significant effect on the volume of FDI in East China, but no significant effect on Middle/West China.