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Exports, Inward Foreign Direct Investment (FDI) and Regional Economic Growth in China

Author

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  • Haishun Sun
  • Ashok Parikh

Abstract

The relationship between exports and economic growth is strong in developing economies. Both externality effects of exports on the non-exports sector and higher marginal productivity in the exports sector in relation to the non-exports sector play an important role in promoting exports and GDP growth. The underlying theoretical model of FEDER, 1982, is used with the data on the Chinese provinces and it is shown that the economic structure, degree of openness and policy environment have a significant role in the relationship between exports and economic growth Dans les economies developpees, le rapport entre les exportations et la croissance economique est fort. Et les effets externes du secteur exportateur sur le secteur non exportateur, et la productivite marginale plus elevee du secteur exportateur par rapport a celle du secteur non exportateur jouent un role important dans la promotion des exportations et de la croissance du PIB. A partir des donnees aupres des provinces en Chine, on emploie le modele theorique sous-jacent de Feder (1982) et demontre que la structure economique, le taux d'ouverture et le milieu politique ont un role important a jouer dans le rapport entre les exportations et la croissance economique Die Beziehung zwischen Export und Wirtschaftswachstum ist in sich entwickelnden Wirtschaften stark ausgepragt. Sowohl die Externalitatseffekte von Exporten auf den nicht-Exportsektor als auch hohere Gewinnspannleistungen im Exportsektor im Verhaltnis zum nicht-Exportsektor spielen eine wichtige Rolle bei der Forderung von Ausfuhren und der Zunahme des Bruttoinlandsproduktes. Das zugrunde liegende theoretische Federsche (1982) Modell wird hier in Verbindung mit den Daten der chinesischen Provinzen benutzt, und es erweist sich, dass Wirtschaftsstruktur, Ausmass der Aufgeschlossenheit und politische Umwelt eine bedeutsame Rolle in der Beziehung zwischen Exporten und Wirtschaftswachstum spielen.

Suggested Citation

  • Haishun Sun & Ashok Parikh, 2001. "Exports, Inward Foreign Direct Investment (FDI) and Regional Economic Growth in China," Regional Studies, Taylor & Francis Journals, vol. 35(3), pages 187-196.
  • Handle: RePEc:taf:regstd:v:35:y:2001:i:3:p:187-196
    DOI: 10.1080/713693805
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