Trade, FDI, and Economic Growth

Hideo Ohashi ()
Additional contact information
Hideo Ohashi: Senshu University

Chapter Chapter 3 in Growth Mechanisms and Sustainable Development of the Chinese Economy, 2022, pp 67-95 from Springer

Abstract: Abstract This study attempts to derive main factors of China’s economic growth due to external opening-up by comparing Japan’s external economic activities from those of China at the catch-up and grow-up stages, respectively. At the catch-up stage, the main goals of both economies were to earn foreign exchange and achieve the current account surplus. Japan expanded exports to earn foreign exchange but was reluctant to introduce foreign capital. China increased export production by relying on foreign-invested manufacturers and reformed key non-market economic practices. At the grow-up stage, both economies were faced with the challenges to eliminate excessive savings and to deal with external imbalances. Japan had a huge trade surplus with the U.S. and responded to it by self-regulatory measures and increasing local production in the U.S. After Japan’s bubble economy burst, China became the economic challenger to the U.S. Trade and FDI have helped China overcome its disadvantageous initial conditions. By taking advantage of globalization, China has achieved rapid economic growth. While Japan has endeavored to adapt to international economic regimes, China as an economic power has begun to show greater interest in the global governance.

Keywords: Reform; Opening-up; FDI; Globalization; WTO; Global imbalance (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-19-3858-0_3

Ordering information: This item can be ordered from
http://www.springer.com/9789811938580

DOI: 10.1007/978-981-19-3858-0_3

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().