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The Contribution of Foreign Direct Investment to China's Export Performance: Evidence from Disaggregated Sectors

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  • Gu, Weishi
  • Awokuse, Titus O.
  • Yuan, Yan

Abstract

There has been a long debate in the theoretical and empirical economic circles on how host country's exports respond to inward foreign direct investment (FDI). This paper examines whether FDI stimulates export performance of the recipient countries using the case of China. It contributes to the literature by investigating the relationship of FDI and export performance using disaggregated manufacturing sectors from 1995 to 2005. The empirical results suggest that FDI flows into China have statistically significant and positive effects on its exports and it exhibits differences across sectors.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida with number 6453.

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Date of creation: 2008
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Handle: RePEc:ags:aaea08:6453

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Keywords: export performance; foreign direct investment; China; panel data; International Relations/Trade; F21; F14; C33;

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Citations

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Cited by:
  1. Yılmaz, Şiir & Serim, Havva, 2013. "The Changes in World Trade: The Analysis On The Basis of Subsectors of Manufacture and Services," EY International Congress on Economics I (EYC2013), October 24-25, 2013, Ankara, Turkey 307, Ekonomik Yaklasim Association.
  2. Greaney, Theresa M. & Li, Yao, 2009. "Assessing foreign direct investment relationships between China, Japan, and the United States," Journal of Asian Economics, Elsevier, vol. 20(6), pages 611-625, November.

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