In emerging markets, a number of factors like GDP growth, market efficiency and higher\nearnings expectations play a vital role in attracting stable and smooth foreign investment.\nThis work is intended to explore the determinants of FPI in China and compare the results\nwith determinants of FPI in India explored by Garg and Dua (2014). We have applied\nmultiple-regression model for ten years� data ranging from 2001 to 2010. The results indicate\nthat external debts are the most significant determinant of FPI for China. We concur with\nGarg and Dua (2014) that GDP growth, FDI and exchange rate are among the significant\ndeterminants of FPI. Our findings suggest that China needs to sustain its economic growth in\norder to attract more FPI.
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