Foreign Direct Investment, Domestic Investment, and Economic Growth in China: A Time Series Analysis

Sumei Tang, Antony Selvanathan and Saroja Selvanathan
Authors registered in the RePEc Author Service: Eliyathamby Antony Selvanathan

No RP2008-19, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: In this paper, we investigate the causal link between foreign direct investment (FDI), domestic investment and economic growth in China for the period 1988-2003. Towards this purpose, a multivariate VAR system with error correction model (ECM) and the innovation accounting (variance decomposition and impulse response function analysis) techniques are used. The results show that while there is a bi-directional causality between domestic investment and economic growth, there is only a single-directional causality from FDI to domestic investment and to economic growth.

Keywords: Economic development; Investments; Foreign investments (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-cna, nep-fdg and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (85)

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Journal Article: Foreign Direct Investment, Domestic Investment and Economic Growth in China: A Time Series Analysis (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:unu:wpaper:rp2008-19

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