Economic growth in the presence of FDI: the perspective of newly industrializing economies

Shujie Yao, Kailei Wei, Genfu Feng and Lin Song

Applied Economics Letters, 2008, vol. 15, issue 11, 887-891

Abstract: This article presents two propositions on the role of FDI in economic growth: (1) FDI is a mover of production efficiency and (2) FDI is a shifter of the host country's production frontier. It then employs a production function with a large panel data set from the Chinese regions over 1979-2003 to test the propositions.

Date: 2008
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DOI: 10.1080/13504850600905022

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