Investing in China - too much or too little?

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Why does China receive so much foreign direct investment (FDI) if its formal institutions are so poorly developed by international standards?

Recent research shows that it is actually not that much, if you consider FDI per capita rather than relative to GDP and compare it to other countries at the same level of economic development. It might be China's special circumstances (sustained growth and relatively good infrastructure in some provinces) that explain foreign investors' appetite for China rather than a unique model of Chinese development.

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