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Foreign Direct Investment in China: Determinants and Effects Author info | Abstract | Publisher info | Download info | Related research | Statistics Stèphane Dees
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This paper attempts to assess the determinants of Foreign Direct Investment (FDI) in China and its effects on the whole economy. After presenting the main theoretical contributions and the previous works done about China’s inward-FDI, an empirical study has been implemented extending the previous ones with a different data set (more recent) and with different methodologies. The traditional determinants of FDI seem to be relevant for China: domestic market size, cost advantages and openness to the rest of the world. Concerning the consequences of FDI on the Chinese economy, our empirical evidence supports the view that FDI affects China’s growth through the diffusion of ideas. Through the introduction of new ideas, multinational firms develop technical progress and hence long-run economic growth. The transmission of ideas seems to have had a positive effect on the Chinese growth. Copyright Kluwer Academic Publishers 1998
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Article provided by Springer in its journal Economics of Planning .
Volume (Year): 31 (1998)
Issue (Month): 2 (May)
Pages: 175-194
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Handle: RePEc:kap:ecopln:v:31:y:1998:i:2:p:175-194Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=113294
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Keywords: Foreign Direct Investment ; Technology Transfer ; Other versions of this item:
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Other versions: Zhao, Xingshu & Michaelowa, Axel, 2004.
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Gerald Epstein & Elissa Braunstein, 2002.
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"The Determinants of US Outgoing FDI in the Food-Processing Sector ,"
2005 Annual meeting, July 24-27, Providence, RI
19131, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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