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Open door policy and China's rapid growth: evidence from city-level data

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  • Shang-Jin Wei

Abstract

There is clear evidence that during 1980-90 more exports are positively associated with higher growth rates across Chinese cities. In comparison, in the late 1980s, the contribution to growth comes mainly from foreign investment. The contribution of foreign investment comes in the form of technological and managerial spillover across firms as opposed to an infusion of new capital. Finally, there is nothing magical about the high growth rates of Chinese coastal areas other than their effective utilization of foreign investment and exports.
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Suggested Citation

  • Shang-Jin Wei, 1993. "Open door policy and China's rapid growth: evidence from city-level data," Pacific Basin Working Paper Series 93-09, Federal Reserve Bank of San Francisco.
    • Handle: RePEc:fip:fedfpb:93-09
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    Keywords

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    JEL classification:

    • F00 - International Economics - - General - - - General
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform

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