Impact of FDI on the foreign trade of China

Haishun Sun

Journal of the Asia Pacific Economy, 1999, vol. 4, issue 2, 317-339

Abstract: This paper investigates the impact of foreign direct investment (FDI) on the foreign trade of China. It firstly presents a theoretical discussion of the impact of FDI on foreign trade from both macro‐ and microeconomic views, and then provides an empirical study of the role of foreign‐invested enterprises in the foreign trade of China. In particular, this paper explores transfer pricing by multinational corporations (MNCs), probing their motivations and latitude to practice transfer pricing in the Chinese particular circumstances and examining empirical evidence.

Date: 1999
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DOI: 10.1080/13547869908724684

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