Abstract
This paper examines the relationship between foreign direct investment, domestic investment, human development, and economic growth, and uses the ordinary least squared technique, and a time series analysis using data for the period 1977-2007. The analysis seeks to answer the fundamental question of what impact Chinese domestic investment, economic growth, and human development has on foreign direct investment into the country. Research regarding foreign direct investment and its fundamental correlation with economic growth and domestic investment has produced varied results. This paper examines those variables, with the addition of human development variables, where research is partial. This paper seeks to expand on current research by examining the effects domestic investment, economic growth, and human development factors have on foreign direct investment into China. The results of the study indicate that when domestic investment and economic growth in China are increasing, foreign direct investment is attracted to the country. The human development variable that had the greatest impact on the amount of foreign direct investment into China was the literacy rate.
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