Why China Can Attract More FDI: A Response to "Competitiveness in India and China: the FDI puzzle"

Second, Prime, Subrahmanyam, and Lin (2011) demonstrate the role of related and supporting industries, governments, and institutions, and "opportunity factors". This relationship is the result of this research paper. Prime, Subrahmanyam, and Lin (2011) cover key conditions of Porter's diamond theory for analyzing problems, but conclude that enough data and examples are lacking to support the results It is.

In this research, I will explain foreign direct investment, the role of foreign direct investment in India and China, and the comparison of foreign direct investment between the two countries. This research was chosen to deepen the understanding of investment in developing countries and participation in the international financial banking market and to influence the global and political aspects. This survey mainly covers those who want to understand the role of direct investment in rapidly growing countries with different environmental conditions such as India and China. Considering the foreign direct investment of these two countries, China is increasingly interested in attracting foreign direct investment and it can be easily analyzed that China is leading economic development compared to India.

However, in recent years, India is slowly and steadily catching up. In 2015, India surpassed neighboring countries and attracted more foreign direct investment. In 2015 India was a preferred destination for Foreign Direct Investment (FDI). According to Foreign Direct Investment Intelligence (FDI Intelligence), the third largest economic power in Asia has surpassed China and has become a leader for many years, but foreign investment has reached $ 63 billion. Times group. The increase in the number of coal and electricity investment projects in India helped the country outpace China. In 2015, the number of domestic projects increased by 8% from the previous year to 697 cases. This is still lower than China (789 projects), indicating India's investment value is much higher.

Environment that attracts investors. Developing countries adopt a number of policies to attract foreign investment. China and India, the major emerging markets, are attracting large amounts of foreign direct investment and China is the second largest income. Market size is the main factor of foreign direct investment, especially for US companies. Absorption of China's Foreign Direct Investment (FDI) has played an important role in its economic growth. The various economic determinants of OFDI in China are market size, labor costs, infrastructure and government policy. To privatize the oil sector and banks to reduce government intervention and provide economic freedom, to provide equal competition conditions for multinational companies by reducing tariffs and open taxes, and allow free entry and exit of multinationals Foreign Direct Investment We also want to investigate the impact of foreign direct investment on China and India's economic growth.