| This thesis investigates determinants that may help to attract Foreign Direct Investment(FDI)which may be especially suitable to form partnerships in specific industry areas.Germany,one of the forerunners in modern manufacturing with the conceptual framework “Industrie 4.0”,contributes large amounts of FDI from the manufacturing industry to China,and this thesis establishes determinants which are specific to this FDI.It will be proxied by location data from member companies of the German Mechanical Engineering Industry Association(VDMA)from 2004-2014.It is hypothesized that a)the transaction value of the technical market,b)the number and/or localisation of theoretically and technically skilled graduates,and c)the length of corresponding political partnerships between Chinese provinces and German Federal States in domains of technology-,investment-and general cooperation are determinants for the attraction of German FDI.Fixed Effects Panel Analyses,Instrumental Variable estimations and a Cross-Sectional analysis will be used to assess whether the above-mentioned potential determinants exert a particular attraction to German FDI from the mechanical engineering domain rather than with respect to the general mass of FDI in China.Findings indicate that the transaction value of the technical market for the period of 2004 to 2014 is significant for FDI from the German mechanical engineering domain,but less so for the overall mass of FDI in China.Second,despite the success of Germany's Dual Vocational Education System,a theoretically and technically skilled potential workforce is not a significant location determinant for German technical FDI in China for the period of 2004 to 2014.Finally,political partnerships between provinces turn out to be insignificant on the provincial level in the single year 2004. |
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