On the Role of Openness in the Chinese Industrial Growth Process - A city-level assessment

Sylvie Démurger

No 199604, Working Papers from CERDI

Abstract: This paper is concerned with the empirical relationship between the Chinese open door policy and the ensuing industrial growth process. Using cross-section data relating to Chinese cities throughout the 1988-93 period, we intend to stress the respective impact of foreign investment and export growth on short-term growth performance. The results first highlight the leading role of foreign investment compared to those of domestic factors and exports. Moreover they not only point out the overall predominance of foreign investment but also indicate that foreign investment tends to dominate export growth as an engine of growth. In terms of balance in regional development, they suggest that foreign investment favours a geographically concentrated development.

Pages: 10
Date: 1996
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