The relationship between inward direct foreign investment and China's provincial export trade
By Qing Zhang, B. Felmingham. 2001
119 citations recorded by the source corpus.
Abstract This study evaluates the causal links between inward foreign direct investment (FDI) and exports from the PRC as a whole and also from its provinces. The national study is based on a monthly time series for the years 1986 to 1999 and cointegration/error correction modelling (ECM) techniques are used to conclude that for the PRC as a whole the relationship between FDI and exports is bidirectional. The relationship between inward FDI/exports for the PRC's provinces, cities, and autonomous regions is analysed in three panel data sets: the high FDI recipients (HFDI, n=144) concentrated along the Chinese coast, medium FDI recipients (MFDI, n=192) in Central China, and the low FDI group (LFDI, n=128) in Western China. The panel data studies reveal that in the HFDI and LFDI, bidirectional causality applies, while exports Granger cause FDI in the MFDI. All regional results are confirmed by Sims tests. The policy implications are explained.
Subfields: Economics and Econometrics, Finance, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/aae94b6e52469f2199dea82e0b3b961b26fd496b
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In Economics and Econometrics
In Strategy and Management
Citations in the corpus
- Economic Growth, Local Industrial Development and Inter-Regional Spillovers from Foreign Direct Investment: Evidence from China (2012, background): “Coastal regions have geographical advantages for export-oriented FDI (Liu et al [16] ; Zhang and Felmingham [17] ) and also offer larger domestic markets for foreign firms serving local customers (Amiti and Javorcik [18].”
- Foreign direct investment in China (2001, unknown): “Using monthly time series data for the years 1986 to 1999 and cointegration/error correction modelling techniques Zhang and Felmingham (2001) find bi-directional causal links between inward FDI and exports for China as a whole.”