Privatization, FDI inflow and economic growth: evidence from China's provinces, 1978--2008

Shiyong Zhao

Applied Economics, 2013, vol. 45, issue 15, 2127-2139

Abstract: China's economic growth over 1978--2008 is a miracle. This article attempts to figure out and quantify the factors leading to this miracle. It is generally believed that economic reform and opening up is the key to China's economic success, but that is far from being exact and specific. This study hypothesizes that privatization and Foreign Direct Investment (FDI) inflow are the two key factors in this process. We focus on identifying the exact, specific and detailed mechanisms of privatization and FDI inflow in promoting economic growth, especially from the provincial level. Then using a panel data covering 31 provinces of Chinese mainland over 1978--2008, we find statistically significant evidence to support our hypotheses. We predict that further economic growth depends on further privatization and opening up, that is, depends on denationalization of the economy.

Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2012.654916 (text/html)
Access to full text is restricted to subscribers.

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:taf:applec:45:y:2013:i:15:p:2127-2139

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036846.2012.654916

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().