Impact of China's Outward Foreign Direct Investment on Its Regional Economic Growth

Chunlai Chen

China & World Economy, 2018, vol. 26, issue 3, 1-21

Abstract: This paper investigates the impact of China's outward foreign direct investment (OFDI) on its economic growth. By using a provincial†level panel dataset and applying fixed†effects and instrumental variable regression techniques, the study finds that both OFDI from provincial firms and OFDI from state†owned enterprises have a positive impact on China's provincial economic growth. The positive impact of OFDI on provincial economic growth may be the result of reverse knowledge spillovers from OFDI to the home provincial economy through demonstration and imitation, labor movement, and backward and forward industrial linkages, thus increasing the productivity and the efficiency of home firms and promoting the growth of the home economy.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
https://doi.org/10.1111/cwe.12240

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:bla:chinae:v:26:y:2018:i:3:p:1-21

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1671-2234

Access Statistics for this article

China & World Economy is currently edited by Yongding Yu

More articles in China & World Economy from Institute of World Economics and Politics, Chinese Academy of Social Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().