The Role of Foreign Direct Investment in Upgrading China's Competitiveness

Abstract

This article assesses the role of foreign direct investment in upgrading the competitiveness of recipient countries with particular reference to the contemporary needs of China. In particular, it examines how this role changes as a country moves along its investment development path, and how host governments have to reorient their locational strategies in order to attract and retain the kind of resources and capabilities, which only foreign firms can provide.