Empirical Study on Host Country Factors Influencing Foreign Divestment in China

摘要

In today's global economy, with the increasing of foreign direct investment, foreign divestment in China becomes frequent. This paper examines the influence factors of foreign divestment in China from the perspective of host country, using the time series data for the period 1998-2007. This study incorporates the policy factors and cost factors to establish the multiple linear regression model. Our empirical results suggest the significant negative relation between barriers and foreign divestment. We discuss the implications and limitations of this paper.