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Sustaining growth in China's regions through FDI

Author

Listed:
  • Ping Zheng
  • Pamela A. Siler
  • Gianluigi Giorgioni

Abstract

This paper focuses on the impact of Foreign Direct Investment (FDI) on regional economic growth in China by using an extended production function model. Panel data are employed at the province level across 29 provinces over the period 1985–1999. Provinces are then split into three macro-regions. The empirical results indicate that FDI has contributed to economic growth in all three macro-regions of China. From a policy perspective, our results suggest that the Chinese government should provide preferential policies to attract and increase FDI inflows into the vast western region. This would help maintain the country's growth rate and further its economic development.

Suggested Citation

  • Ping Zheng & Pamela A. Siler & Gianluigi Giorgioni, 2006. "Sustaining growth in China's regions through FDI," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 2(1/2), pages 4-22.
    • Handle: RePEc:ids:wremsd:v:2:y:2006:i:1/2:p:4-22
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    Citations

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    Cited by:

    1. Ping Zheng, 2013. "The Variation in Indian Inward FDI Patterns," Management International Review, Springer, vol. 53(6), pages 819-839, December.
    2. Taotao Chen & Ari Kokko & Patrik Gustavsson Tingvall, 2011. "FDI and spillovers in China: non-linearity and absorptive capacity," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 9(1), pages 1-22.
    3. Ping Zheng, 2011. "The determinants of disparities in inward FDI flows to the three macro-regions of China," Post-Communist Economies, Taylor & Francis Journals, vol. 23(2), pages 257-270.

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