Determinants of foreign direct investment in Taiwan Province of China: a new approach and findings

摘要

Studies on the determinants of investment inflows to developing economies usually adopt either an ex ante managers' opinion survey or an ex post regression-analysis approach. This study applies both approaches and finds interesting discrepancies in the results. It is suggested, therefore, that policy makers in developing countries may need to adopt a dual approach when considering how to attract foreign direct investment. The experience of Taiwan Province of China in this regard offers lessons for policy makers.