FDI in Chinese Cities: Spillovers and Impact on Growth
AbstractThis study reconsiders the question of impact of FDI on growth performance. We rely on a dataset 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 neighbours. Copyright 2007 The Authors Journal compilation Blackwell Publishing Ltd. 2007 .
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CEPII research center in its series Working Papers with number 2006-22.
Date of creation: Dec 2006
Date of revision:
Growth; Convergence; economic geography; FDI;
Other versions of this item:
- Nicole Madariaga & Sandra Poncet, 2007. "FDI in Chinese Cities: Spillovers and Impact on Growth," The World Economy, Wiley Blackwell, vol. 30(5), pages 837-862, 05.
- E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O50 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - General
- R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-01-02 (All new papers)
- NEP-CNA-2007-01-02 (China)
- NEP-DEV-2007-01-02 (Development)
- NEP-GEO-2007-01-02 (Economic Geography)
- NEP-INT-2007-01-02 (International Trade)
- NEP-TRA-2007-01-02 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2004. "Space and Growth," Tinbergen Institute Discussion Papers 04-129/3, Tinbergen Institute.
- Sandy Dall'erba & Julie Le Gallo, 2003.
"Regional Convergence And The Impact Of European Structural Funds Over 1989-1999: A Spatial Econometric Analysis,"
0310005, EconWPA, revised 12 Feb 2004.
- Sandy Dall'erba & Julie Le Gallo, 2008. "Regional convergence and the impact of European structural funds over 1989-1999: A spatial econometric analysis," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 219-244, 06.
- Luiz de Mello, 1997. "Foreign direct investment in developing countries and growth: A selective survey," Journal of Development Studies, Taylor & Francis Journals, vol. 34(1), pages 1-34.
- de Mello, Luiz R, Jr, 1999.
"Foreign Direct Investment-Led Growth: Evidence from Time Series and Panel Data,"
Oxford Economic Papers,
Oxford University Press, vol. 51(1), pages 133-51, January.
- L.R. de Mello Jr., 1996. "Foreign Direct Investment-Led Growth: Evidence from Time Series and Panel Data," Studies in Economics 9615, Department of Economics, University of Kent.
- LE GALLO, Julie, 2001. "Space-time analysis of GDP disparities among European regions: A Markov chains approach," LATEC - Document de travail - Economie (1991-2003) 2001-06, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
- Nuno Crespo & Maria Paula Fontoura & Isabel Proença, 2009.
"FDI spillovers at regional level: Evidence from Portugal,"
Papers in Regional Science,
Wiley Blackwell, vol. 88(3), pages 591-607, 08.
- Nuno Crespo & Isabel Proença & Maria Paula Fontoura, 2008. "FDI Spillovers at Regional Level: Evidence from Portugal," Working Papers Series 1 ercwp0508, ISCTE-IUL, Business Research Unit (BRU-IUL).
- Nuno Crespo & Isabel Proença & Maria Paula Fontoura, 2007. "FDI Spillovers at Regional Level: Evidence from Portugal," Working Papers Department of Economics 2007/28, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Massimo Armenise & Giorgia Giovannetti & Gianluca Santoni, 2011. "FDI in Business Services has general TFP effects : evidence from Italy," Working Papers - Economics wp2011_12.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
- Adam Blake & Ziliang Deng & Rod Falvey, .
"How Does the Productivity of Foreign Direct Investment Spill over to Local Firms in Chinese Manufacturing?,"
09/03, University of Nottingham, GEP.
- Adam Blake & Ziliang Deng & Rod Falvey, 2009. "How does the productivity of foreign direct investment spill over to local firms in Chinese manufacturing?," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 7(2), pages 183-197.
- He, Jia & Rui, Oliver M. & Zha, Xiaolei, 2011. "Governance Infrastructure and Location of Foreign Direct Investment in the People’s Republic of China," ADBI Working Papers 324, Asian Development Bank Institute.
- José-Antonio Monteiro & Madina Kukenova, 2009.
"Spatial Dynamic Panel Model and System GMM: A Monte Carlo Investigation,"
IRENE Working Papers
09-01, IRENE Institute of Economic Research.
- Kukenova, Madina & Monteiro, Jose-Antonio, 2008. "Spatial Dynamic Panel Model and System GMM: A Monte Carlo Investigation," MPRA Paper 11569, University Library of Munich, Germany, revised Nov 2008.
- Kukenova, Madina & Monteiro, Jose-Antonio, 2008. "Spatial Dynamic Panel Model and System GMM: A Monte Carlo Investigation," MPRA Paper 13405, University Library of Munich, Germany, revised Feb 2009.
- Yanqing Jiang, 2012. "An empirical study of openness and convergence in labor productivity in the Chinese provinces," Economic Change and Restructuring, Springer, vol. 45(4), pages 317-336, November.
- Ziliang Deng & Rod Falvey & Adam Blake, 2013. "Quantifying Foreign Direct Investment Productivity Spillovers in China: A Computable General Equilibrium Model," Asian Economic Journal, East Asian Economic Association, vol. 27(4), pages 369-389, December.
- Li, Xibao, 2011. "Sources of External Technology, Absorptive Capacity, and Innovation Capability in Chinese State-Owned High-Tech Enterprises," World Development, Elsevier, vol. 39(7), pages 1240-1248, July.
- Park, Innwon & Park, Soonchan, 2010. "Modes of foreign direct investment and patterns of trade: Why do multinational enterprises come To China?," MPRA Paper 26679, University Library of Munich, Germany.
- Herrmann-Pillath, Carsten & Libman, Alexander & Xiaofan, Yu, 2010. "State and market integration in China: A spatial econometrics approach to 'local protectionism'," Frankfurt School - Working Paper Series 137, Frankfurt School of Finance and Management.
- Alexander Klemm & Stefan van Parys, 2009.
"Empirical Evidenceon the Effects of Tax Incentives,"
IMF Working Papers
09/136, International Monetary Fund.
- Alexander Klemm & Stefan Parys, 2012. "Empirical evidence on the effects of tax incentives," International Tax and Public Finance, Springer, vol. 19(3), pages 393-423, June.
- A. Klemm & S. Van Parys, 2010. "Empirical Evidence on the Effects of Tax Incentives," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 10/673, Ghent University, Faculty of Economics and Business Administration.
- Sacchi, Agnese & Salotti, Simone, 2014. "The impact of national fiscal rules on the stabilisation function of fiscal policy," MPRA Paper 56982, University Library of Munich, Germany.
- Beugelsdijk, Sjoerd & Smeets, Roger & Zwinkels, Remco, 2008. "The impact of horizontal and vertical FDI on host's country economic growth," International Business Review, Elsevier, vol. 17(4), pages 452-472, August.
- Abdelaal Mahmoud, Ashraf, 2011. "Financial Crises and Bilateral Foreign Direct Investment Flows," MPRA Paper 30417, University Library of Munich, Germany.
- Franco, Chiara, 2013. "Exports and FDI motivations: Empirical evidence from U.S. foreign subsidiaries," International Business Review, Elsevier, vol. 22(1), pages 47-62.
- Ouyang, Puman & Fu, Shihe, 2012. "Economic growth, local industrial development and inter-regional spillovers from foreign direct investment: Evidence from China," China Economic Review, Elsevier, vol. 23(2), pages 445-460.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.