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Foreign Direct Investment and Regional Inequality in China

Kailei Wei, Shujie Yao and Aying Liu

No RP2008-94, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: China's economic miracle over the past three decades has been featured with its open-door policy, especially the absorption of foreign capital. One downside effect of economic reform has been the ever rising interregional inequality. As FDI is highly unevenly distributed across regions, many scholars and policymakers have blamed their inflows as one of the main factors driving the Chinese regions apart. If this logic were true, then controlling the scale of FDI could be a solution to reduce regional inequality.

Keywords: Equality and inequality; Foreign investments; Regional economics (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (2)

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