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Open Door Policy and China's Rapid Growth: Evidence from City-level Data

  • Shang-Jin Wei

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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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4602.

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Date of creation: Dec 1993
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Publication status: published as Growth Theories in Light of the East Asian Experience, Takatoshi Ito and Anne O. Krueger, eds., (Chicago: University of Chicago Press: 1995), pp 73-98.
Handle: RePEc:nbr:nberwo:4602
Note: ITI
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  1. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
  2. Young, Alwyn, 1991. "Learning by Doing and the Dynamic Effects of International Trade," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 369-405, May.
  3. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc.
  4. David K. Backus & Patrick J. Kehoe & Timothy J. Kehoe, 1992. "In search of scale effects in trade and growth," Staff Report 152, Federal Reserve Bank of Minneapolis.
  5. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
  6. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  7. Rivera-Batiz, Luis A & Romer, Paul M, 1991. "Economic Integration and Endogenous Growth," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 531-55, May.
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