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FDI in Chinese Cities: Spillovers and Impact on Growth

FDI in Chinese Cities: Spillovers and Impact on Growth This study reconsiders the question of impact of FDI on growth performance. We rely on a dataset of Chinese cities between 1990 and 2002 to investigate the effects of FDI in the traditional growth regression framework using the GMM estimator for dynamic panels. Our growth model incorporates an explicit consideration of spatial dependence effects in the form of spatially lagged income and FDI. Our results reveal that Chinese cities take advantage not only of FDI flows received locally but also of FDI flows received by their neighbours. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The World Economy Wiley

FDI in Chinese Cities: Spillovers and Impact on Growth

The World Economy , Volume 30 (5) – May 1, 2007

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References (123)

Publisher
Wiley
Copyright
Copyright © 2007 Wiley Subscription Services, Inc., A Wiley Company
ISSN
0378-5920
eISSN
1467-9701
DOI
10.1111/j.1467-9701.2007.01025.x
Publisher site
See Article on Publisher Site

Abstract

This study reconsiders the question of impact of FDI on growth performance. We rely on a dataset of Chinese cities between 1990 and 2002 to investigate the effects of FDI in the traditional growth regression framework using the GMM estimator for dynamic panels. Our growth model incorporates an explicit consideration of spatial dependence effects in the form of spatially lagged income and FDI. Our results reveal that Chinese cities take advantage not only of FDI flows received locally but also of FDI flows received by their neighbours.

Journal

The World EconomyWiley

Published: May 1, 2007

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