1.

CENTRAL GOVERNMENT POLICIES - Policies designed by the central government

have a significant impact on FDI as such policies can create an enabling environment
for investment, provide incentives to investors, and regulate foreign investment.
Studies of spatial and temporal changes of FDI in Guangdong suggest the
significance of national government policies, especially at the initial stage.

2. NATIONAL DEVELOPMENT ZONES - It can have a significant effect on FDI as

these are special economic zones designated by the central government to attract
foreign investors, through incentives such as tax rebates, simplified regulatory
procedures, and infrastructure support. Studies have shown that these zones have a
positive effect on FDI.

3. MUNICIPALITIES - Municipalities can play a significant role in FDI as they can create
a favourable investment climate by providing a supportive regulatory environment,
infrastructure, and amenities. .Studies have shown that all three FDI hot spots are
centrally administered municipalities - Beijing, Shanghai, and Tianjin.This indicates
the important role of municipalities in attracting FDI in China.

4. INSTITUTIONS - Good institutions, such as favourable policy incentives at the

nation-state level, can also positively influence the location of FDI. Studies in China
have found that the effects of this factor varied in different regions and had the most
influence on Guangdong.

5. According to the author, the factors of wage and market size are not statistically
significant factors affecting FDI.

6. The study conducted by the author reveals that transportation and agglomeration
have positive effects on FDI, however effects of these vary in different regions.
Transportation had the most influence on FDI in Pan-YRD and agglomeration had
the most influence in BRR.