Proceedings of the 2026 8th International Conference on Economic Management and Cultural Industry (ICEMCI 2026)

2026 8th International Conference on Economic Management and Cultural Industry (ICEMCI 2026)

📍Beijing, China🗓️ 12-14 June 2026
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The Effects of Financial Openness on FDI in China: Evidence from Provincial Data

Authors
Zhuoxin Yang1, *, June Charoenseang1
1Faculty of Economics, Chulalongkorn University, Bangkok, Thailand
*Corresponding author. Email: zhuoxinyang118@qq.com
Corresponding Author
Zhuoxin Yang
Available Online 30 September 2026.
DOI
10.2991/978-94-6239-777-4_93How to use a DOI?
Keywords
financial openness; FDI inflows; institutional quality; China; provincial panel data
Abstract

This study examines the impact of financial openness on foreign direct investment (FDI) across Chinese provinces and whether this relationship changes with local institutional quality. Using provincial panel data from 2000 to 2023, the paper estimates two-way fixed-effects models with province and year effects. Financial openness is measured from a de facto perspective, while institutional quality is proxied by the Fan Gang marketization index. The results suggest that the effect of financial openness on FDI is not uniform. Instead, financial openness is more likely to attract FDI when it is supported by stronger institutions. The findings point to a practical policy message: provinces cannot rely on financial openness alone; institutional improvement and basic investment conditions, especially infrastructure, remain important complements.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2026 8th International Conference on Economic Management and Cultural Industry (ICEMCI 2026)
Series
Advances in Economics, Business and Management Research
Publication Date
30 September 2026
ISBN
978-94-6239-777-4
ISSN
2352-5428
DOI
10.2991/978-94-6239-777-4_93How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Zhuoxin Yang
AU  - June Charoenseang
PY  - 2026
DA  - 2026/09/30
TI  - The Effects of Financial Openness on FDI in China: Evidence from Provincial Data
BT  - Proceedings of the 2026 8th International Conference on Economic Management and Cultural Industry (ICEMCI 2026)
PB  - Atlantis Press
SP  - 911
EP  - 917
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-777-4_93
DO  - 10.2991/978-94-6239-777-4_93
ID  - Yang2026
ER  -