FDI and Host Countries’ Exports: The Case of China

Kevin Honglin Zhang ()
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Kevin Honglin Zhang: Illinois State University, Department of Economics, Postal: 100 N University St # 142 Normal IL 61761-4402 USA ,, http://www.cob.ilstu.edu/

Economia Internazionale / International Economics, 2006, vol. 59, issue 1, 113-127

Abstract: From the 32nd in _978 to the 3rd largest exporting country in the world in 2004, China’s export boom was accompanied by substantial inflows of foreign direct investment (FDI) in the same period. exports by foreign-invested enterprises in 2004 were $339 billion, comprising 57% of China’s total exports. While there are considerable theoretical treatments of the FDI-export linkage, relevant empirical analyses have been limited. this paper attempts to close the gap by investigating the issue with the Chinese industrial data. the estimates indicate that FDI indeed has had a positive impact on China’s export performance, its export-promoting effect is much greater than that of domestic capital, and its effect is larger in labor-intensive industries, as one might anticipate.

Keywords: Foreign direct investment (FDI); exports; Foreign-Invested enterprises (FIes); Multinational Corporations (MnCs) (search for similar items in EconPapers)
JEL-codes: F21 F23 O53 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (3)

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