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Economic growth in the presence of FDI: the perspective of newly industrializing economies

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  • Shujie Yao
  • Kailei Wei
  • Genfu Feng
  • Lin Song

Abstract

This article presents two propositions on the role of FDI in economic growth: (1) FDI is a mover of production efficiency and (2) FDI is a shifter of the host country's production frontier. It then employs a production function with a large panel data set from the Chinese regions over 1979-2003 to test the propositions.

Suggested Citation

  • Shujie Yao & Kailei Wei & Genfu Feng & Lin Song, 2008. "Economic growth in the presence of FDI: the perspective of newly industrializing economies," Applied Economics Letters, Taylor & Francis Journals, vol. 15(11), pages 887-891.
  • Handle: RePEc:taf:apeclt:v:15:y:2008:i:11:p:887-891 DOI: 10.1080/13504850600905022
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    References listed on IDEAS

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