Analysis of the Spatial Effect of Provincial Fiscal Transparency on FDI in China

DOI

10.2991/iceemt-16.2016.4How to use a DOI?

Keywords

Fiscal transparency, foreign direct investment, spatial effect

Abstract

In promoting fiscal transparency, China's various provinces care too much about "next door neighbor" view and behavior; neither of them wants to "go too further". Taking the spatial effect into consideration and comparing the three models, OLS, SLM and SEM, this paper explores the spatial correlation between various provinces' fiscal transparency and the impact of fiscal transparency on FDI. The result shows that there is a significant positive spatial correlation between various provinces' fiscal transparency, and fiscal transparency has spatial dependence on FDI in China, which is reflected in the error term; for the coefficient value of the SEM, 1% change of fiscal transparency would cause 1.4686% change of FDI, which indicates that in China promoting fiscal transparency can play a positive role in optimizing investment environment and attracting foreign capital. The paper finally proposes relative suggestions to improve fiscal transparency to attract foreign investment to China.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Ying Li
AU  - Ming Na
PY  - 2016/08
DA  - 2016/08
TI  - Analysis of the Spatial Effect of Provincial Fiscal Transparency on FDI in China
BT  - Proceedings of the 2016 International Conference on Education, E-learning and Management Technology
PB  - Atlantis Press
SP  - 15
EP  - 21
SN  - 2352-5398
UR  - https://doi.org/10.2991/iceemt-16.2016.4
DO  - 10.2991/iceemt-16.2016.4
ID  - Li2016/08
ER  -