Title

How does FDI affect China? Evidence from industries and provinces

Document Type

Journal article

Source Publication

Journal of Comparative Economics

Publication Date

12-1-2007

Volume

35

Issue

4

First Page

774

Last Page

799

Keywords

FDI, Economic growth, Spillover, Industries, Provinces, Net impacts

Abstract

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.

DOI

10.1016/j.jce.2007.05.001

Print ISSN

01475967

E-ISSN

10957227

Publisher Statement

Copyright © 2007 Association for Comparative Economic Studies. Published by Elsevier Inc.

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Full-text Version

Publisher’s Version

Recommended Citation

Ran, J., Voon, J. P., & Li, G. (2007). How does FDI affect China? Evidence from industries and provinces. Journal of Comparative Economics, 35(4), 774-799. doi: 10.1016/j.jce.2007.05.001