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FDI convergence and Spatial Dependence between Chinese Provinces

Mary-Françoise Renard () and Nasser Ary Tanimoune ()
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Mary-Françoise Renard: Centre d'Etudes et de Recherches sur le Développement International(CERDI)

No 200531, Working Papers from CERDI

Abstract: This study aims at investigating the spatial dimension of the FDI. Considering the distribution of FDI between the provinces, our purpose is the spatial dependency that may be observed. Using data for 1992-2002, we find that taking into account the regional specification induces significant FDI convergence process between Chinese provinces. We also find that correcting for the bias resulting from spatial autocorrelation in errors terms leads to higher estimates of the beta convergence coefficients. One can deduce that this is somewhat important for Chinese authorities to promote an attractivity policy based on regional complementarities rather than on FDI quantity

Keywords: FDI; China; Spatial autocorrelation; Provinces (search for similar items in EconPapers)
Pages: 16
Date: 2005
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Working Paper: FDI convergence and Spatial Dependence between Chinese Provinces (2011) Downloads
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