INFLUENCE OF GERMAN, FRENCH, BRITISH AND DUTCH DIRECT INVESTMENT IN CHINA ON THE STRUCTURE OF BILATERAL TRADE

Hongyi Bi (), Jing Gao () and Linfeng Yuan ()
Additional contact information
Hongyi Bi: School of International Economics and Trade, Shandong University of Finance and Economics, Jinan, Shandong, China
Jing Gao: School of International Economics and Trade, Shandong University of Finance and Economics, Jinan, Shandong, China
Linfeng Yuan: School of International Economics and Trade, Shandong University of Finance and Economics, Jinan, Shandong, China

Theoretical and Empirical Researches in Urban Management, 2014, vol. 9, issue 2, 118-132

Abstract: Based on the 2001-2010 panel data, this paper describes the German, French, British and Dutch investment in China and empirically studied the impact of the four countries’ direct investment on China's import and export structure. Research shows that every 1% increase of the four countries’ FDI in China’s manufacturing industry causes a 0.44% growth in China’s import from these countries and a 0.7% growth in export to these countries. Every 1% increase FDI in electrical machinery and equipment industry in investment causes a 0.45% growth in import and a 0.39% growth in export. Every 1% increase of FDI in transportation industry promotes a 0.39% growth in import and a 0.31% growth in export. And every 1% increase of FDI in leasing and business service industry every 1% increase in investment poses a 0.21% increase in import and a 0.25% growth in export. Therefore, we can see that major EU countries’ direct investment in China plays an important role in improving the structure of China's import and export.

Keywords: Germany, France; Britain, Holland, FDI, Structure of Bilateral Trade (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://um.ase.ro/no92/6.pdf (application/pdf)

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:rom:terumm:v:9:y:2014:i:2:p:118-132

Access Statistics for this article

Theoretical and Empirical Researches in Urban Management is currently edited by Colesca Sofia

More articles in Theoretical and Empirical Researches in Urban Management from Research Centre in Public Administration and Public Services, Bucharest, Romania Contact information at EDIRC.
Bibliographic data for series maintained by Colesca Sofia ().