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FDI in Chinese Cities: Spillovers and Impact on Growth

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Author Info
Nicole Madariaga
Sandra Poncet

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Abstract

We study the impact of FDI on growth performance. We rely on a data set of Chinese cities between 1990 and 2002 to investigate the effects of FDI in the traditional growth regression framework using the GMM estimator for dynamic panels. Our growth model incorporates an explicit consideration of spatial dependence effects in the form of spatially lagged income and FDI. Our results reveal that Chinese cities take advantage not only of FDI flows received locally but also of FDI flows received by their neighbors.

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Paper provided by CEPII research center in its series Working Papers with number 2006-22.

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Date of creation: Dec 2006
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Handle: RePEc:cii:cepidt:2006-22

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Related research
Keywords: Growth; regional convergence; economic geography; foreign direct investment China;

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Find related papers by JEL classification:
E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
O1 - Economic Development, Technological Change, and Growth - - Economic Development
O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
R1 - Urban, Rural, and Regional Economics - - General Regional Economics

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  1. Nuno Crespo & Isabel Proença & Maria Paula Fontoura, 2007. "FDI Spillovers at Regional Level: Evidence from Portugal," Working Papers 2007/28, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon.. [Downloadable!]
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