Roads to Prosperity: Assessing the Impact of Foreign Direct Investment on Economic Growth in 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, 2001, vol. 54, issue 1, 113-125

Abstract: Does inward foreign direct investment (FDI) promote economic growth in China? This study extends the previous studies on the issue by assessing empirically to what extent FDI inflows have contributed to China’s outstanding performance of income growth in the period 1986-97. A model of FDI-economic growth links is derived and estimated with cross-section and panel data at the provincial level. The estimates suggest that (a) FDI does promote China’s economic growth; (b) the positive impact of FDI seems quite larger in the coastal than the inland regions in the 1990s; and (c) the physical marginal product of foreign capital seems to be significantly larger than that of domestic capital.

Keywords: Foreign direct investment; Economic growth (search for similar items in EconPapers)
JEL-codes: F21 F23 O53 (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:ecoint:0228

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