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Does International Investment Help Poverty Reduction in China?

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  • Kevin Honglin Zhang

Abstract

This study analyzes effects of international investment on poverty reduction in China by testing a growth model with provincial data. Economic growth is the single most important factor influencing poverty reduction. Inward foreign direct investment (FDI) seems central to achieving that goal because it is a key ingredient for successful growth in China. FDI might reduce poverty through promoting economic growth and diffusing growth widely. Results of cross-section and panel estimates suggest that FDI is indeed an important source of China's economic growth and therefore a powerful force for poverty reduction. The more poverty could be reduced through government-led programs and polices that improve poor provinces' investment environments the more FDI is attracted.

Suggested Citation

  • Kevin Honglin Zhang, 2006. "Does International Investment Help Poverty Reduction in China?," Chinese Economy, Taylor & Francis Journals, vol. 39(3), pages 79-90, May.
    • Handle: RePEc:mes:chinec:v:39:y:2006:i:3:p:79-90
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    Cited by:

    1. Thierry Pairault, 2010. "Le rôle des investissements directs étrangers entrants et sortants en Chine : une appréciation," Post-Print halshs-00982768, HAL.
    2. Yamin, Mo & Sinkovics, Rudolf R., 2009. "Infrastructure or foreign direct investment?: An examination of the implications of MNE strategy for economic development," Journal of World Business, Elsevier, vol. 44(2), pages 144-157, April.
    3. Trung Xuan Hoang & Quang Nhat Bui, 2017. "Sectoral Employment and Poverty in Rural Vietnam in 2000s," Economics Bulletin, AccessEcon, vol. 37(4), pages 2458-2465.

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