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On the Performance of Foreign Direct Investment in China: 1981-2004

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  • Mingming Jiang

    (University of California, Riverside)

Abstract

This paper centers on the measurement of the time-varying efficiency of foreign direct investment (FDI) in China from 1981 to 2004. I modify the standard stochastic production frontier approach to isolate the estimate of the technical efficiency of FDI. The estimations show that the FDI technical efficiency exhibits a U-shaped time pattern, i.e., there is efficiency deterioration in the early stage of China's reform and a gradual efficiency improvement after the mid-1990s. However, this U-shaped time pattern disappears when technical change (changing frontier) is taken into account.

Suggested Citation

  • Mingming Jiang, 2012. "On the Performance of Foreign Direct Investment in China: 1981-2004," Economics Bulletin, AccessEcon, vol. 32(4), pages 3320-3332.
    • Handle: RePEc:ebl:ecbull:eb-12-00567
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Foreign Direct Investment; Technical Efficiency; Stochastic Frontier;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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    Access and download statistics

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