Targettng Transaction Costs: An Evaluation of Investment Incentive Policies in China's Foreign Trade Zones

This paper explores the effectiveness of incentive policies in attracting foreign investment in China's recently opened "free" economic zones. A transaction costminimization conceptual framework is used to specify an empirical model. Crosssection data from 132 regions are used for testing the hypothesis that transaction cost-reducing policies are more effective in attracting investment than other tax incentive and promotional policies. The hypothesis is validated.


Issue Date:
Aug 04 1991
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/271349
Language:
English
Total Pages:
16




 Record created 2018-04-13, last modified 2018-04-13

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