Understanding the Slowdown in Foreign Investment in China

Elena Ianchovichina, Thomas Hertel and Terrie Walmsley ()

GTAP Research Memoranda from Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University

Abstract: No one thought China’s high growth rates would persist forever, or that multinational firms would always keep pouring into the Chinese market, eager to establish operations regardless of local conditions. Economic convergence ensures that there will be a cooling off as wages rise and expected rates of return to investments fall. The difficult question has never been whether China will lose its luster, but when this would happen and how the adjustment will occur.

Date: 2014
New Economics Papers: this item is included in nep-tra
Note: GTAP Research Memorandum No. 26
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