ABSTRACT
This study investigates the effects of financial development of foreign direct investment (FDI) target countries on FDI inflows, with a focus on how bilateral political relations change the effects through evidence from China. Results show that (1) FDI target countries’ financial development significantly increases FDI inflows from China; (2) Bilateral political relations significantly amplify the effects of destination countries’ financial development on FDI inflows from China.
Disclosure statement
No potential conflict of interest was reported by the author(s).