ABSTRACT
This chapter provides an overview of the locational and sectoral patterns of foreign investment at the subregional levels and the corresponding determinants. It elaborates the environment for foreign investment in the North China coastal region and the data and methodology. The chapter discusses the locational and sectoral composition of foreign direct investment (FDI) in the region. It examines the corresponding locational and sectoral determinants, followed by the local economic impacts of foreign investment in the region. The locational distribution of foreign investment at the subregional levels generally exhibits two major tendencies—concentration in major economic centers and in special investment zones. The locational composition of FDI in the North China coastal region generally corresponds to the patterns of foreign investment in other regions, with major economic centers as the primary areas of concentration. The inflows of FDI have led to an expansion and change of the local industrial systems in the region, especially in Beijing-Tianjin area where direct ventures are concentrated.
