INFLUENCE OF GERMAN, FRENCH, BRITISH AND DUTCH DIRECT INVESTMENT IN CHINA ON THE STRUCTURE OF BILATERAL TRADE

Based on the 2001-2010 panel data, this paper describes the German, French, British and Dutch investment in China and empirically studied the impact of the four countries' direct investment on China's import and export structure. Research shows that every 1% increase of the four countries&...

Full description

Saved in:
Bibliographic Details
Published inTheoretical and Empirical Researches in Urban Management Vol. 9; no. 2; pp. 118 - 132
Main Authors BI, Hongyi, GAO, Jing, YUAN, Linfeng
Format Journal Article
LanguageEnglish
Published Bucharest Research Center in Public Administration and Public Services Academy of Economic Studies 01.05.2014
Academia de Studii Economice Bucuresti
Research Centre in Public Administration & Public Services
Subjects
Analysis
Bilateralism
Business service industries
Developing countries
Economic models
Foreign investment
Foreign investments
Growth
Imports
Industrial machinery
International trade
LDCs
Manufacturing industries
Service industries
Trade
Trade surplus
Transportation industries
United Kingdom
Netherlands
France
China
Germany
Online AccessGet full text

Cover

More Information
Summary:Based on the 2001-2010 panel data, this paper describes the German, French, British and Dutch investment in China and empirically studied the impact of the four countries' direct investment on China's import and export structure. Research shows that every 1% increase of the four countries' FDI in China's manufacturing industry causes a 0.44% growth in China's import from these countries and a 0.7% growth in export to these countries. Every 1% increase FDI in electrical machinery and equipment industry in investment causes a 0.45% growth in import and a 0.39% growth in export. Every 1% increase of FDI in transportation industry promotes a 0.39% growth in import and a 0.31% growth in export. And every 1% increase of FDI in leasing and business service industry every 1% increase in investment poses a 0.21% increase in import and a 0.25% growth in export. Therefore, we can see that major EU countries' direct investment in China plays an important role in improving the structure of China's import and export.
ISSN:2065-3913
2065-3921