Research on the Influence of FDI on Improving Technological Progress of China’s Western Region

Hai-bing Wu (), Yan-qiong Zhou and Hua Li
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Hai-bing Wu: Xiangnan University
Yan-qiong Zhou: Xiangnan University
Hua Li: Information Center of the National Development and Reform Commission

Chapter Chapter 16 in The 19th International Conference on Industrial Engineering and Engineering Management, 2013, pp 153-164 from Springer

Abstract: Abstract This article has summarized China’s western region’s characteristics of attracting and utilizing foreign capital from 1986 to 2010. It has described the present situation that the distribution of FDI here is unbalanced and the ability of absorbing foreign investment of this region is weak. TFP of the provinces in China’ Western Region has been calculated, and been used to measure technological progress. Through constructing VAB Model, this article has empirically analyzed the relationship between FDI and TFP. The result proves that FDI has some facilitation to the technological progress of China’s Western Region, but is not very significant. In the process of attracting and using foreign investment, the Western Region of China should optimize investment environment, and expand FDI scale; change the concept of attracting investment, and improve the performance of foreign investment; encourage Sino-foreign joint venture, and strengthen technical cooperation.

Keywords: China’s western region; FDI; Technological progress; VAR model (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-642-38442-4_16

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DOI: 10.1007/978-3-642-38442-4_16

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