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Understanding the Slowdown in Foreign Investment in China

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  • Ianchovichina, Elena
  • Thomas Hertel
  • Terrie Walmsley

Abstract

No one thought China’s high growth rates would persist forever, or that multinational firms would always keep pouring into the Chinese market, eager to establish operations regardless of local conditions. Economic convergence ensures that there will be a cooling off as wages rise and expected rates of return to investments fall. The difficult question has never been whether China will lose its luster, but when this would happen and how the adjustment will occur.

Suggested Citation

  • Ianchovichina, Elena & Thomas Hertel & Terrie Walmsley, 2014. "Understanding the Slowdown in Foreign Investment in China," GTAP Research Memoranda 4329, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    • Handle: RePEc:gta:resmem:4329
    Note: GTAP Research Memorandum No. 26
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    File URL: https://www.gtap.agecon.purdue.edu/resources/res_display.asp?RecordID=4329
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    Cited by:

    1. Vianna, Andre C., 2016. "The impact of exports to China on Latin American growth," Journal of Asian Economics, Elsevier, vol. 47(C), pages 58-66.

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