IDEAS home Printed from https://ideas.repec.org/p/cdi/wpaper/7.html

On the Role of Openness in the Chinese Industrial Growth Process - A city-level assessment

Author

Listed:
  • Sylvie DEMURGER

Abstract

This paper is concerned with the empirical relationship between the Chinese open door policy and the ensuing industrial growth process. Using cross-section data relating to Chinese cities throughout the 1988-93 period, we intend to stress the respective impact of foreign investment and export growth on short-term growth performance. The results first highlight the leading role of foreign investment compared to those of domestic factors and exports. Moreover they not only point out the overall predominance of foreign investment but also indicate that foreign investment tends to dominate export growth as an engine of growth. In terms of balance in regional development, they suggest that foreign investment favours a geographically concentrated development.

Suggested Citation

  • Sylvie DEMURGER, 1996. "On the Role of Openness in the Chinese Industrial Growth Process - A city-level assessment," Working Papers 199604, CERDI.
    • Handle: RePEc:cdi:wpaper:7
    as

    Download full text from publisher

    File URL: http://publi.cerdi.org/ed/1996/1996.04.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lardy,Nicholas R., 1992. "Foreign Trade and Economic Reform in China," Cambridge Books, Cambridge University Press, number 9780521414951, January.
    2. Shang-Jin Wei, 1995. "The Open Door Policy and China's Rapid Growth: Evidence from City-Level Data," NBER Chapters, in: Growth Theories in Light of the East Asian Experience, pages 73-104, National Bureau of Economic Research, Inc.
    3. Balasubramanyam, V N & Salisu, M & Sapsford, David, 1996. "Foreign Direct Investment and Growth in EP and IS Countries," Economic Journal, Royal Economic Society, vol. 106(434), pages 92-105, January.
    4. Backus, David K. & Kehoe, Patrick J. & Kehoe, Timothy J., 1992. "In search of scale effects in trade and growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 377-409, December.
    5. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    6. Balassa, Bela, 1978. "Exports and economic growth : Further evidence," Journal of Development Economics, Elsevier, vol. 5(2), pages 181-189, June.
    7. V N Balasubramanyam & M Salisu & David Sapsford, "undated". "Foreign Direct Investment and Growth: New Hypotheses and Evidence," Working Papers ec7/96, Department of Economics, University of Lancaster.
    8. Nicholas R. Lardy, 1994. "China in the World Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 24, October.
    9. Esfahani, Hadi Salehi, 1991. "Exports, imports, and economic growth in semi-industrialized countries," Journal of Development Economics, Elsevier, vol. 35(1), pages 93-116, January.
    10. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    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. Joshua J. Lewer & Hendrik Van den Berg, 2003. "How Large Is International Trade’s Effect on Economic Growth?," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 363-396, July.
    2. repec:kqi:journl:2018-2-1-3 is not listed on IDEAS
    3. Renelt, David, 1991. "Economic growth : a review of the theoretical and empirical literature," Policy Research Working Paper Series 678, The World Bank.
    4. Mohamad A. Abou Hamia, 2022. "What level of international technology should developing countries transfer to sustain their economic growth?," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(6), pages 4217-4239, December.
    5. Fakhimi, MohammadAmin & Miremadi, Iman, 2022. "The impact of technological and social capabilities on innovation performance: a technological catch-up perspective," Technology in Society, Elsevier, vol. 68(C).
    6. Ben-David, Dan & Loewy, Michael B, 1998. "Free Trade, Growth, and Convergence," Journal of Economic Growth, Springer, vol. 3(2), pages 143-170, June.
    7. Ng, Choy Peng & Law, Teik Hua & Wong, Shaw Voon & Kulanthayan, S., 2017. "Relative improvements in road mobility as compared to improvements in road accessibility and economic growth: A cross-country analysis," Transport Policy, Elsevier, vol. 60(C), pages 24-33.
    8. Sucharita Ghosh & Camilla Mastromarco, 2013. "Cross-border Economic Activities, Human Capital and Efficiency: A Stochastic Frontier Analysis for OECD Countries," The World Economy, Wiley Blackwell, vol. 36(6), pages 761-785, June.
    9. Norman Gemmell, 2001. "Fiscal Policy in a Growth Framework," WIDER Working Paper Series DP2001-84, World Institute for Development Economic Research (UNU-WIDER).
    10. Shankar Gimire & Kul Kapri & Md Rajib-Ur Rahman, 2018. "Imitate or Innovate? FDI, Technology, and Income Levels in Middle Income Countries," Journal of Development Innovations, KarmaQuest International, vol. 2(1), pages 1-13, May.
    11. Sushanta Mallick & Tomoe Moore, 2008. "Foreign Capital in a Growth Model," Review of Development Economics, Wiley Blackwell, vol. 12(1), pages 143-159, February.
    12. Chengang Wang & Xiaming Liu & Yingqi Wei, 2004. "Impact of Openness on Growth in Different Country Groups," The World Economy, Wiley Blackwell, vol. 27(4), pages 567-585, April.
    13. Hüseyin Şen & Ayşe Kaya & Ayşegül Durucan, 2023. "New insights into the growth-maximizing size of government: evidence and implications for Turkey," Economic Change and Restructuring, Springer, vol. 56(4), pages 2243-2296, August.
    14. Elsadig Musa Ahmed & Rahim Kialashaki, 2023. "FDI inflows spillover effect implications on the Asian‐Pacific labour productivity," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 575-588, January.
    15. Chun‐ping Chang & Yung‐hsiang Ying, 2008. "The Generative Power Of Air Freight In The Trade Openness – Economic Growth Nexus In African Countries," South African Journal of Economics, Economic Society of South Africa, vol. 76(3), pages 493-512, September.
    16. Mite Miteski & Dijana Janevska Stefanova, 2017. "The Impact of Sectorial FDI on Economic Growth in Central, Eastern and Southeastern Europe," Working Papers 2017-01, National Bank of the Republic of North Macedonia.
    17. Belloumi, Mounir, 2014. "The relationship between trade, FDI and economic growth in Tunisia: An application of the autoregressive distributed lag model," Economic Systems, Elsevier, vol. 38(2), pages 269-287.
    18. Rendón Obando, Hernando & Ramírez Franco, Luz Dary, 2017. "Impacto de la inversión extranjera directa y del grado de apertura de la economía sobre el crecimiento económico para América Latina 1980-2010/Impact of Foreign Direct Investment and Openness Degree o," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 35, pages 217-244, Enero.
    19. Gao, Ting, 2004. "Regional industrial growth: evidence from Chinese industries," Regional Science and Urban Economics, Elsevier, vol. 34(1), pages 101-124, January.
    20. Shaukat, Badiea & Zhu, Qigui & Khan, M. Ijaz, 2019. "Real interest rate and economic growth: A statistical exploration for transitory economies," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 534(C).
    21. Sayef BAKARI, 2025. "The three-ways linkages between domestic investment, exports and economic growth: new evidence from Saudi Arabia," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(642), S), pages 37-58, Spring.

    More about this item

    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:cdi:wpaper:7. 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: Vincent Mazenod (email available below). General contact details of provider: https://edirc.repec.org/data/ceauvfr.html .

    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.