FDI, Regional Differences and Economic Growth: Panel Data Evidence from China

Jeremy Clegg, Chengqi Wang and Adam R. Cross

Chapter 12 in The Challenge of International Business, 2004, pp 220-241 from Palgrave Macmillan

Abstract: Abstract Development economists have long argued that countries pursuing externally oriented development strategies are more likely to achieve higher rates of economic growth than those that are internally focused. A number of studies have examined the relationship between inward FDI and economic growth in the developing host countries.1 A generally accepted conclusion is that FDI has played a significant role in promoting economic growth in host countries because FDI represents ‘the transmission to the host country of a package of capital, managerial skills, and technical skills’ (Johnson, 1972, p. 2). An interesting finding of previous studies is that the economic and technological conditions of a recipient economy influence the extent to which FDI contributes to growth.

Keywords: Human Capital; Foreign Direct Investment; Host Country; Total Factor Productivity; International Business (search for similar items in EconPapers)
Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-50864-4_12

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DOI: 10.1057/9780230508644_12

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