IDEAS home Printed from https://ideas.repec.org/a/rom/terumm/v9y2014i2p118-132.html
   My bibliography  Save this article

Influence Of German, French, British And Dutch Direct Investment In China On The Structure Of Bilateral Trade

Author

Listed:
  • Hongyi BI

    (School of International Economics and Trade, Shandong University of Finance and Economics, Jinan, Shandong, China)

  • Jing GAO

    (School of International Economics and Trade, Shandong University of Finance and Economics, Jinan, Shandong, China)

  • Linfeng YUAN

    (School of International Economics and Trade, Shandong University of Finance and Economics, Jinan, Shandong, China)

Abstract

Based on the 2001-2010 panel data, this paper describes the German, French, British and Dutch investment in China and empirically studied the impact of the four countries’ direct investment on China's import and export structure. Research shows that every 1% increase of the four countries’ FDI in China’s manufacturing industry causes a 0.44% growth in China’s import from these countries and a 0.7% growth in export to these countries. Every 1% increase FDI in electrical machinery and equipment industry in investment causes a 0.45% growth in import and a 0.39% growth in export. Every 1% increase of FDI in transportation industry promotes a 0.39% growth in import and a 0.31% growth in export. And every 1% increase of FDI in leasing and business service industry every 1% increase in investment poses a 0.21% increase in import and a 0.25% growth in export. Therefore, we can see that major EU countries’ direct investment in China plays an important role in improving the structure of China's import and export.

Suggested Citation

  • Hongyi BI & Jing GAO & Linfeng YUAN, 2014. "Influence Of German, French, British And Dutch Direct Investment In China On The Structure Of Bilateral Trade," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 9(2), pages 118-132, May.
    • Handle: RePEc:rom:terumm:v:9:y:2014:i:2:p:118-132
    as

    Download full text from publisher

    File URL: https://um.ase.ro/no92/6.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    2. Lipsey, Robert E & Weiss, Merle Yahr, 1981. "Foreign Production and Exports in Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 488-494, November.
    3. Markusen, James R & Svensson, Lars E O, 1985. "Trade in Goods and Factors with International Differences in Technology," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(1), pages 175-192, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mann, Catherine L., 1993. "Determinants of Japanese direct investment in US manufacturing industries," Journal of International Money and Finance, Elsevier, vol. 12(5), pages 523-541, October.
    2. Anwar, Amar Iqbal & Hasse, Rolf & Rabbi, Fazli, 2008. "Location Determinants of Indian Outward Foreign Direct Investment: How Multinationals Choose their Investment Destinations?," MPRA Paper 47397, University Library of Munich, Germany.
    3. Hejazi, Walid & Safarian, A.E., 2005. "NAFTA effects and the level of development," Journal of Business Research, Elsevier, vol. 58(12), pages 1741-1749, December.
    4. Prajukta Tripathy & Pragyanrani Behera & Bikash Ranjan Mishra, 2023. "Study of linkages between productivity, export, and outward foreign direct investment: An empirical perspective of Indian manufacturing industries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1527-1548, April.
    5. Jin Inhwan, 2008. "Is Japanese FDI a Substitute for or a Complement to Trade in Asia?," TERG Discussion Papers 236, Graduate School of Economics and Management, Tohoku University, revised Oct 2008.
    6. Oksanen, Olli-Pekka, 2006. "Are Foreign Investments Replacing Domestic Investments? - Evidence from Finnish Manufacturing," Discussion Papers 1001, The Research Institute of the Finnish Economy.
    7. James R. Markusen & Keith E. Maskus, 2001. "Multinational Firms: Reconciling Theory and Evidence," NBER Chapters, in: Topics in Empirical International Economics: A Festschrift in Honor of Robert E. Lipsey, pages 71-98, National Bureau of Economic Research, Inc.
    8. Robert E. Lipsey, 1995. "Outward Direct Investment and the U.S. Economy," NBER Chapters, in: The Effects of Taxation on Multinational Corporations, pages 7-42, National Bureau of Economic Research, Inc.
    9. Nijkamp, P. & Poot, J., 1990. "Endogenous technological progress and spatial interdependence," Serie Research Memoranda 0061, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    10. Edward John Ray, 1989. "The Determinants of Foreign Direct Investment in the United States, 1979-85," NBER Chapters, in: Trade Policies for International Competitiveness, pages 53-84, National Bureau of Economic Research, Inc.
    11. Liu, Xiaming & Wang, Chengang & Wei, Yingqi, 2001. "Causal links between foreign direct investment and trade in China," China Economic Review, Elsevier, vol. 12(2-3), pages 190-202.
    12. Bishwanath Goldar & Yashobanta Parida & Anindita Goldar, 2024. "Complementarity Versus Substitution Relationship between Outward FDI and Exports: Evidence from India," Journal of Asian Economic Integration, , vol. 6(1), pages 90-117, April.
    13. Yoong-Deok Jeon, 1992. "The determinants of Korean foreign direct investment in manufacturing industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 128(3), pages 527-542, September.
    14. Jean‐Charles Bricongne & Sebastian Franco Bedoya & Margarita Lopez Forero, 2023. "The proximity‐concentration trade‐off with multi‐product firms: Are exports and FDI complements or substitutes?," The World Economy, Wiley Blackwell, vol. 46(5), pages 1264-1289, May.
    15. Athreye, Suma & Cantwell, John, 2007. "Creating competition?: Globalisation and the emergence of new technology producers," Research Policy, Elsevier, vol. 36(2), pages 209-226, March.
    16. Benjamin O. Fordham, 2008. "Economic Interests and Congressional Voting on Security Issues," Journal of Conflict Resolution, Peace Science Society (International), vol. 52(5), pages 623-640, October.
    17. Kokko, Ari, 2006. "The Home Country Effects Of Fdi In Developed Economies," EIJS Working Paper Series 225, Stockholm School of Economics, The European Institute of Japanese Studies.
    18. Song Zhang & Chunlai Chen, 2020. "Does Outward Foreign Direct Investment Facilitate China's Export Upgrading?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 28(5), pages 64-89, September.
    19. Svensson, Roger, 1993. "Evidence on Declining Exports Due to Overseas Production," Working Paper Series 369, Research Institute of Industrial Economics.
    20. Zhang, Zhaoyong & Ow Chin Hock, 1996. "Trade interdependence and direct foreign investment between ASEAN and China," World Development, Elsevier, vol. 24(1), pages 155-170, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rom:terumm:v:9:y:2014:i:2:p:118-132. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Colesca Sofia (email available below). General contact details of provider: https://edirc.repec.org/data/ccasero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.