ON THE DISTRIBUTION OF JAPANESE OFFICIAL DEVELOPMENT ASSISTANCE AND FOREIGN DIRECT INVESTMENTS IN CHINA

LA REPARTICIÓN DE LA AYUDA Y LAS INVERSIONES EXTRANJERAS DIRECTAS JAPONESAS EN CHINA

Séverine Blaise ()
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Séverine Blaise: CEREFI - Centre d'Economie Régionale, de l'Emploi et des Firmes Internationales - Université Paul Cézanne - Aix-Marseille 3

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Abstract: The aim of this paper is to assess the impact of Japanese aid on foreign direct investment flows in the People's Republic of China. The link between Japanese public and private sectors in development co-operation programs is under particular scrutiny. An empirical analysis using a conditional logit model on Chinese regional statistics (from 1980 to 1999) shows that development assistance flows had a positive impact on the choice of the location of Japanese private investors in China, although other factors such as the level of economic activity had a more significant "spillover" effect. In a context of significant cuts in public funds for development aid, we stress the importance of a complementary process in which foreign assistance is directed towards the promotion of infrastructures, acting as a precondition to future private investments.

Date: 2004
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Published in Région et Développement, 2004

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02379969

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