The Role of FDI, Exports and Spillover Effects in the Regional Development of China

By Qian Zhang, B. Felmingham. 2002

118 citations recorded by the source corpus.

The objective of this analysis is to assess the impacts of export expansion, inward FDI, domestic investment and labour on the growth of China's Eastern, Central and Western regions using panel data over the period 1984 to 1998. A major contribution of the study is its tests for the presence of interregional spillover effects. The study indicates that both inward FDI and domestic investment stimulate growth in all three regions and for the PRC as a whole and that export expansion stimulates the growth of the PRC, Eastern and Central China, but not the West. Labour enhances the growth of the more traditional Western region, but not the more capital intensive Eastern seaboard or the PRC in its entirety. Finally, output growth spills over from the East to Western and Central China and from the Central area to Western China. These results are fully explained in the text.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/d4f6fdde62a0b6c074406e899ab2b9415e9e35ab

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In Economics and Econometrics

1. Tao Ma
2. Shihe Fu
3. Tao Hong
4. Haozhe Zhang
5. Puman Ouyang
6. Gary Gereffi
7. Henry S. C. Yeung
8. Jennifer Bair

Citations in the corpus

• Development Models and Industrial Upgrading in China and Mexico (2008, background): “Fourth, China is using FDI to promote ‘fast learning’ in new industries and knowledge spillovers in its domestic market (Zhang and Felmingham, 2002; Wang and Meng, 2004).”
• Economic Growth, Local Industrial Development and Inter-Regional Spillovers from Foreign Direct Investment: Evidence from China (2012, methodology): “[38] use panel datasets of Chinese provinces during the period 1981–1998 and 1984-1998, respectively, and find that economic growth in coastal regions has a positive impact on economic growth of inland regions.”
• Foreign direct investment in China (2001, unknown): “In fact, this is a common problem in most studies for China, including Chen, Chang and Zhang (1995), Chen and Fleisher (1996), Mody and Wang (1997), Sun (1998b), Dayal-Gulati and Husain (2000), Sun and Parikh (2001), Kevin Zhang (2001b), Wei Zhang (2001) and Zhang and Felmingham (2002).”
• Tourism spatial spillover effects and urban economic growth (2015, background): “The positive spatial spillover effects in many regions of China resulting from economic growth have been demonstrated by many studies (Ying, 2003; Zhang & Felmingham, 2002).”