Papers by Keyword: Path Dependence

Abstract: The introduction of land finance and foreign direct investment (FDI) lead to competition among provincial local governments in the background of fiscal decentralization. This paper analyzes the provincial data from 1999 to 2008 by a spatial econometric model. The main contents include the relationship between FDI policies in different provinces and the path dependence between FDI selection and land grant. The results showed that the FDI policies are significantly influenced by the similar policies of the surrounding provinces: the policy formulation and implementation is a complementary strategy between the studied province and surrounding provinces in the current year, and an alternative strategy in a lag. Land grant price significantly influent the entry of real estate. There is an obvious path dependence when FDI choose investment region. In this paper, these issues are analyzed with the actual situation in China.

Abstract: Based on an annual panel for the western cities in China and system GMM method, this paper build the spatial econometric models to analyze if the same factors have the different impacts between the capital cities and the prefecture-level cities on their economic development. The results show that the capital cities more rely on their development path and less dependent on other cities of the same level; while the prefecture-level cities on the contrary.