Spatiotemporal Changes and Location Choice of Foreign Direct Investment in China

Figures & data

Table 1 Definitions of variables and data sources

Variables	Measurement	Expected sign with LFDI	Theoretical justification	Data source
LFDI	Foreign direct investment (FDI) inflows, defined by annual amount of foreign capital actually utilized	N/A	N/A	China City Statistical Yearbook and China Prefectural Statistical Yearbooks
CONSUM	Consumption scale, measured by total retail sales of consumer goods	+	Market seeking	China City Statistical Yearbook and Annual Statistical Bulletin of Local Social Economy
ENER	Energy and natural resources, measured by the total gas supply of coal gas and natural gas	+	Production factors seeking	China City Statistical Yearbook and China Urban Construction Statistical Yearbook
TECH	Technology and innovation capacity, measured by annual number of patent applications granted	+	Production factors seeking	China City Statistical Yearbook and Annual Statistical Bulletin of Local Social Economy
WAGE	Labor cost, measured by average wage of employed staff and workers	_	Cost reduction	China City Statistical Yearbook and China Prefectural Statistical Yearbooks
TRANS	Transport convenience, measured by the total freight traffic by modes of transport (highway, water, and civil aviation)	+	Cost reduction	China City Statistical Yearbook and Annual Statistical Bulletin of Local Social Economy
FGLM	Foreign-funded firm agglomeration, measured by number of industrial enterprises above designated size with foreign funds	+	Cost reduction	China City Statistical Yearbook and China Prefectural Statistical Yearbooks

Note: LFDI = local FDI flow.

Table 2 Results of Moran’s I and Getis–Ord global statistics

	2002		2010		2018
	Moran’s I	Getis–Ord	Moran’s I	Getis–Ord	Moran’s I	Getis–Ord
Observed value	0.186	0.000	0.168	0.000	0.098	0.000
z score	10.953	8.582	9.819	7.334	5.809	5.274
p value	0.000	0.000	0.000	0.000	0.000	0.000

Figure 1 Hot spot analysis of LFDI distribution in China (2002).

Figure 2 Hot spot analysis of LFDI distribution in China (2010).

Figure 3 Hot spot analysis of LFDI distribution in China (2018).

Figure 4 Local Moran’s cluster or outlier of LFDI distribution in China (2002).

Figure 5 Local Moran’s cluster or outlier of LFDI distribution in China (2010).

Figure 6 Local Moran’s cluster or outlier of LFDI distribution in China (2018).

Table 3 Results of spatial autocorrelation regression

Variable	Coefficient	SE	z value	Probability
W_FDI	0.003	0.036	0.097	0.922
CONSTANT	–69894**	29185.3	–2.395	0.017
COSUM	0.007***	0.001	9.232	0.000
ENER	0.488***	0.062	7.812	0.000
TECH	0.680	0.787	0.864	0.387
WAGE	0.604*	0.422	1.432	0.152
TRANS	0.482	0.443	1.089	0.276
FGLM	3.279	20.188	0.162	0.871
Number of observations	328
R^2	0.829

* Significant at 0.1.

** Significant at 0.05.

*** Significant at 0.01.