On economic growth, FDI and exports in China
China has achieved high economic growth for a prolonged period of time. Academic researchers have tried alternative explanations for this miraculous growth. This study focuses on the effect of exports and foreign direct investments (FDI) on economic performance, using a large panel data set encompassing 28 Chinese provinces over the period 1978-2000. Adopting Pedroni's panel unit root test and Arellano and Bond's dynamic panel data estimating technique, it is found that both exports and FDI have a strong and positive effect on economic growth. The results suggest that two development policies adopted in China are useful for other developing and transitional economies: export promotion and adoption of world technology and business practices.
Volume (Year): 38 (2006)
Issue (Month): 3 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
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.:
- Chengqi Wang & Pamela Siler & Xiaming Liu, 2002. "The relative economic performance of foreign subsidiaries in UK manufacturing," Applied Economics, Taylor & Francis Journals, vol. 34(15), pages 1885-1892.
- Brada, Josef C & Kutan, Ali M & Zhou, Su, 1993. "China's Exchange Rate and the Balance of Trade," Economic Change and Restructuring, Springer, vol. 26(3), pages 229-242.
- Nathan Jensen, 2002. "Economic reform, state capture, and international investment in transition economies," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(7), pages 973-977.
- Fragkiskos Filippaios & Marina Papanastassiou & Robert Pearce, 2003. "The evolution of US outward foreign direct investment in the pacific rim: a cross-time and country analysis," Applied Economics, Taylor & Francis Journals, vol. 35(16), pages 1779-1787.
- Blomstrom, Magnus & Sjoholm, Fredrik, 1999.
"Technology transfer and spillovers: Does local participation with multinationals matter?1,"
European Economic Review,
Elsevier, vol. 43(4-6), pages 915-923, April.
- Blomström, Magnus & Sjöholm, Fredrik, 1998. "Technology Transfer and Spillovers: Does Local Participation with Multinationals Matter?," SSE/EFI Working Paper Series in Economics and Finance 268, Stockholm School of Economics.
- Blomström, Magnus & Sjöholm, Fredrik, 1998. "Technology, Transfer and Spillovers: Does Local Participation With Multinationals Matter?," CEPR Discussion Papers 2048, C.E.P.R. Discussion Papers.
- Magnus Blomstrom & Fredrik Sjoholm, 1998. "Technology Transfer and Spillovers? Does Local Participation with Multinationals Matter?," NBER Working Papers 6816, National Bureau of Economic Research, Inc.
- Greenaway, David, 1998. "Does Trade Liberalisation Promote Economic Development?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(5), pages 491-511, November.
- Chandana Chakraborty & Parantap Basu, 2002. "Foreign direct investment and growth in India: a cointegration approach," Applied Economics, Taylor & Francis Journals, vol. 34(9), pages 1061-1073.
- Pomfret, Richard, 1997. "Growth and Transition: Why Has China's Performance Been So Different?," Journal of Comparative Economics, Elsevier, vol. 25(3), pages 422-440, December.
- Joel Deichmann & Socrates Karidis & Selin Sayek, 2003. "Foreign direct investment in Turkey: regional determinants," Applied Economics, Taylor & Francis Journals, vol. 35(16), pages 1767-1778.
- Changkyu Choi, 2004. "Foreign direct investment and income convergence," Applied Economics, Taylor & Francis Journals, vol. 36(10), pages 1045-1049.
- S. Lael Brainard, 1993. "A Simple Theory of Multinational Corporations and Trade with a Trade-Off Between Proximity and Concentration," NBER Working Papers 4269, National Bureau of Economic Research, Inc.
- Theodore Groves & Yongmiao Hong & John McMillan & Barry Naughton, 1994. "Autonomy and Incentives in Chinese State Enterprises," The Quarterly Journal of Economics, Oxford University Press, vol. 109(1), pages 183-209.
- Xiaohui Liu & Peter Burridge & P. J. N. Sinclair, 2002. "Relationships between economic growth, foreign direct investment and trade: evidence from China," Applied Economics, Taylor & Francis Journals, vol. 34(11), pages 1433-1440.
- Natalia Barbosa & Paulo Guimaraes & Douglas Woodward, 2004. "Foreign firm entry in an open economy: the case of Portugal," Applied Economics, Taylor & Francis Journals, vol. 36(5), pages 465-472.
- Kang Park, 2003. "Patterns and strategies of Foreign Direct Investment: the case of Japanese firms," Applied Economics, Taylor & Francis Journals, vol. 35(16), pages 1739-1746.
- Pedroni, Peter, 1999. " Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 653-670, Special I.
- Peter Pedroni, 1999. "Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Department of Economics Working Papers 2000-02, Department of Economics, Williams College.
- Nazrul Islam, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 1127-1170.
- Xiaming Liu & Haiyan Song & Yingqi Wei & Peter Romilly, 1997. "Country characteristics and foreign direct investment in China: A panel data analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 133(2), pages 313-329, June. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:38:y:2006:i:3:p:339-351. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst)
If references are entirely missing, you can add them using this form.