Study on the Relationship of FDI and Processing Trade Value-added Rate -Based on the Data from Shandong Province of China

Based on the data of Shandong province in china over the 1998-2017 periods, this paper examines the impacts of inward FDI from Japan, Korea and USA on the Processing Trade Value-added Rate (ADVA) respectively. The cointegration equation indicates Japanese and Korean direct investments in Shandong Pr...

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Bibliographic Details
Published inJournal of physics. Conference series Vol. 1639; no. 1; pp. 12103 - 12106
Main Author Sui, Hongxia
Format Journal Article
LanguageEnglish
Published Bristol IOP Publishing 01.10.2020
Subjects
Physics
United States > US
China
Japan
Shandong China
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Summary:Based on the data of Shandong province in china over the 1998-2017 periods, this paper examines the impacts of inward FDI from Japan, Korea and USA on the Processing Trade Value-added Rate (ADVA) respectively. The cointegration equation indicates Japanese and Korean direct investments in Shandong Province are positively correlated with ADVA, but American direct investment is negative. There is no evidence that the FDI from Japan, Korea and USA have effects on the processing trade value-added rate of Shandong province as they are not Granger causality of ADVA. The power to promote the transformation and upgrading of Shandong's processing trade comes from inside instead of outside, and independent technology innovation is critical.
ISSN:1742-6588
1742-6596
DOI:10.1088/1742-6596/1639/1/012103