Abigail Hornstein, assistant professor of economics, is the author of “Where A Contract Is Signed Determines Its Value: Chinese Provincial Variation in Utilized vs. Contracted FDI Flows,” published in the March 2011 edition of the Journal of Comparative Economics, 39(1).
In the article, Hornstein explains how there are major differences between ex ante corporate investment plans and ex post investments. The case of China is useful for understanding this problem because there is substantial time series and cross sectional variation in the ratio of utilized to contracted FDI (UC ratio), which is less than one in most province-year observations. Provinces may