INTERREGIONAL IMPACT OF FOREIGN DIRECT INVESTMENT ON CHINA’S INLAND URBANIZATION

Chunlai Chen and Yan Wu
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Yan Wu: School of Economics, Beijing Technology and Business University, Beijing, P. R. China

The Singapore Economic Review (SER), 2019, vol. 64, issue 04, 997-1017

Abstract: Foreign direct investment (FDI) in China is heavily concentrated in coastal region, which has attracted large amount of rural migrant workers from inland region. This type of population migration associated with FDI may have an impact on China’s inland urbanization. There is however little research on this topic. This paper aims to investigate the interregional impact of FDI on China’s inland urbanization. The study finds that on average FDI has negative interregional impact on inland urbanization. However, FDI in coastal and inland regions engaged in different trade modes (processing versus ordinary trade) has different interregional impact on China’s inland urbanization.

Keywords: Foreign direct investment; urbanization; dynamic panel system GMM; labor migration; China (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (4)

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DOI: 10.1142/S0217590817450035

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