IDEAS home Printed from https://ideas.repec.org/a/taf/jitecd/v11y2001i4p367-386.html

The impact of foreign trade and investment reform on industry location: the case of China

Author

Listed:
  • Ting Gao

Abstract

The open-door policy adopted in China, through its preferential treatments that consistently favour south-east coastal provinces, has resulted in the geographic concentration of foreign trade and investment. This paper provides evidence at both the aggregate and disaggregate levels that the south-east coast of China experienced much higher rates of industrial growth during 1985-98, indicating a geographic shift in industry towards this region. Empirical results using provincial-level data show a clear positive link between inward foreign direct investment (FDI) and regional industrial growth, especially after 1991 when the volume of FDI took off. This implies a significant impact of China's foreign trade and investment reforms on industry location.

Suggested Citation

  • Ting Gao, 2001. "The impact of foreign trade and investment reform on industry location: the case of China," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 11(4), pages 367-386.
    • Handle: RePEc:taf:jitecd:v:11:y:2001:i:4:p:367-386
    DOI: 10.1080/0963819022000014276
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/0963819022000014276
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/0963819022000014276?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Lardy,Nicholas R., 1992. "Foreign Trade and Economic Reform in China," Cambridge Books, Cambridge University Press, number 9780521414951, November.
    2. Shang-Jin Wei, 2000. "Why Does China Attract So Little Foreign Direct Investment?," NBER Chapters, in: The Role of Foreign Direct Investment in East Asian Economic Development, pages 239-265, National Bureau of Economic Research, Inc.
    3. Barry Naughton, 1996. "China's Emergence and Prospects as a Trading Nation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 27(2), pages 273-344.
    4. Ito, Takatoshi & Krueger, Anne O. (ed.), 1995. "Growth Theories in Light of the East Asian Experience," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226386706, August.
    5. Takatoshi Ito & Anne O. Krueger, 1995. "Growth Theories in Light of the East Asian Experience," NBER Books, National Bureau of Economic Research, Inc, number ito_95-2, January.
    6. Nicholas R. Lardy, 1994. "China in the World Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 24, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elissa Braunstein & Gerald Epstein, 2002. "Bargaining Power and Foreign Direct Investment in China: Can 1.3 Billion Consumers Tame the Multinationals?," SCEPA working paper series. 2002-13, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    2. Xiaohui Liu & Chang Shu, 2003. "Determinants of Export Performance: Evidence from Chinese Industries," Economic Change and Restructuring, Springer, vol. 36(1), pages 45-67, March.
    3. Gao, Ting, 2004. "Regional industrial growth: evidence from Chinese industries," Regional Science and Urban Economics, Elsevier, vol. 34(1), pages 101-124, January.
    4. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
    5. Sun, Qian & Tong, Wilson & Yu, Qiao, 2002. "Determinants of foreign direct investment across China," Journal of International Money and Finance, Elsevier, vol. 21(1), pages 79-113, February.
    6. Kanbur, Ravi & Zhang, Xiaobo, 2001. "Fifty Years Of Regional Inequality In China: A Journey Through Revolution, Reform And Openness," Working Papers 7236, Cornell University, Department of Applied Economics and Management.
    7. Kwong-Leung Tang, 1998. "East Asian Newly Industrializing Countries: Economic Growth and Quality of Life," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 43(1), pages 69-96, February.
    8. Chi‐Wa Yuen, 1998. "The Fifth Asian Dragon: Sources Of Growth In Guangdong, 1979–1994," Contemporary Economic Policy, Western Economic Association International, vol. 16(1), pages 1-11, January.
    9. Huh, Hyeon-seung & Kim, David, 2013. "An empirical test of exogenous versus endogenous growth models for the G-7 countries," Economic Modelling, Elsevier, vol. 32(C), pages 262-272.
    10. Thanasis Stengos & Aurangzeb Aurangzeb, 2008. "An empirical investigation of the relationship between education and growth in Pakistan," International Economic Journal, Taylor & Francis Journals, vol. 22(3), pages 345-359.
    11. Sorin-George Toma, 2019. "Learning From The Asian Tigers: Lessons In Economic Growth," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 63-69, June.
    12. Khuong Minh Vu, 2013. "The Dynamics of Economic Growth," Books, Edward Elgar Publishing, number 14689, June.
    13. Howard J. Shatz & David G. Tarr, 2017. "Exchange Rate Overvaluation and Trade Protection: Lessons from Experience," World Scientific Book Chapters, in: Trade Policies for Development and Transition, chapter 5, pages 115-127, World Scientific Publishing Co. Pte. Ltd..
    14. Y. Wu, 1997. "Productivity & Efficiency: Evidence from the Chinese regional economies," Economics Discussion / Working Papers 97-18, The University of Western Australia, Department of Economics.
    15. Wu, Yanrui, 2000. "Is China's economic growth sustainable? A productivity analysis," China Economic Review, Elsevier, vol. 11(3), pages 278-296.
    16. McMahon, Walter W., 1998. "Education and Growth in East Asia," Economics of Education Review, Elsevier, vol. 17(2), pages 159-172, April.
    17. Wu, Yiyun & Zhu, Xiwei & Groenewold, Nicolaas, 2019. "The determinants and effectiveness of industrial policy in china: A study based on Five-Year Plans," China Economic Review, Elsevier, vol. 53(C), pages 225-242.
    18. Lee Kian Lim & Michael McAleer, 2004. "Convergence and catching up in ASEAN: a comparative analysis," Applied Economics, Taylor & Francis Journals, vol. 36(2), pages 137-153.
    19. Ding, Chengri & Lichtenberg, Erik, 2008. "Using Land to Promote Urban Economic Growth in China," Working Papers 36748, University of Maryland, Department of Agricultural and Resource Economics.
    20. Sharmistha Self & Richard Grabowski, 2008. "Examining The Link Between Japan'S Development And Education Of Females," Pacific Economic Review, Wiley Blackwell, vol. 13(3), pages 279-288, August.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jitecd:v:11:y:2001:i:4:p:367-386. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJTE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.