Singapore's direct investment in China : a geographical perspective

Singapore has emerged as one of the largest foreign investors in China since the 1990s. Although many studies on foreign direct investment (FDI) in China are available, little has been done on the issue of Singapore's direct investment in China specifically. Moreover, there often lacks a geographical perspective despite the intensified globalisation or internationalisation of economic activities. This study attempts to explain why Singapore investors choose China to locate their business with regard to geographical organisation of production. It is argued that cost-reduction and market-seeking are the two motives for FDI while the determination of a location for these purposes is associated with the nature of industries.Master of Art