Exports and Economic Development in Chinese Provinces: The Moderating Role of Foreign Direct Investments

Quan Minh Ho, Nga Thu Thi Do, Hoang Thanh Tran, Thao Thi Thanh Tran and Khoa Dang Duong

South Asian Journal of Macroeconomics and Public Finance, 2026, vol. 15, issue 1, 44-70

Abstract: This research examines the relationship between foreign direct investment and exports and their impact on economic development in Chinese provinces. The study employs the dynamic generalized method of moments to analyse a sample from 31 provinces and cities in China from 2000 to 2022. The results indicate that net foreign direct investment harms economic growth, whereas exports enhance the economic growth rate in Chinese provinces and major cities. These findings support the resource mobility theory and the open economy models, but do not support the spillover effect theory. Our study provides valuable insights into sustainable economic growth, particularly at the provincial level in emerging nations. JEL Classif ication: F15, F21, F40, F43

Keywords: Economic growth; foreign direct investment; export; generalized method of moments; China (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:sae:smppub:v:15:y:2026:i:1:p:44-70

DOI: 10.1177/22779787251392388

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