How does FDI affect China? Evidence from industries and provinces
Using the latest panel data from 19 industries and 30 provinces in China, we found it is not true that more FDI necessarily brings about more output growth across the board. Local industries without foreign participation lose while those with some participation gain from the inflow. Provinces in wes...
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Published in | Journal of Comparative Economics Vol. 35; no. 4; pp. 774 - 799 |
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Main Authors | , , |
Format | Journal Article |
Language | English |
Published |
San Diego
Elsevier Inc
01.12.2007
Elsevier Elsevier BV |
Series | Journal of Comparative Economics |
Subjects | |
Online Access | Get full text |
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Summary: | Using the latest panel data from 19 industries and 30 provinces in China, we found it is not true that more FDI necessarily brings about more output growth across the board. Local industries without foreign participation lose while those with some participation gain from the inflow. Provinces in western and central regions lose while those in the eastern and coastal regions appear to be the major beneficiaries. While the net effect of FDI is still positive, the regional disparity has been growing. It casts doubt on the rationale of haphazard and lavish policies to compete for FDI in China.
Journal of Comparative Economics
35 (4) (2007) 774–799. |
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Bibliography: | ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23 |
ISSN: | 0147-5967 1095-7227 |
DOI: | 10.1016/j.jce.2007.05.001 |