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Regional analysis of the impact of inward foreign direct investment on economic growth in the Chinese electronic industry

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  • William Sheng Liu
  • Frank Wogbe Agbola

Abstract

This article empirically investigates the impact of inward foreign direct investment (FDI) on regional economic growth in the Chinese electronic industry (CEI). Utilizing a provincial-level panel data spanning the period 1989 to 2009, we specify and estimate an endogenous economic growth model for the CEI. Empirical results indicate that, for the coastal region, FDI inflows have been growth enhancing, while in the central and western regions the impact of FDI on economic growth is mixed, depending on the channel of capital flow. Results also indicate that exports, human capital, science and technology investment and fixed asset investment are growth enhancing, while unemployment and foreign R&D investment are growth impeding in the CEI.

Suggested Citation

  • William Sheng Liu & Frank Wogbe Agbola, 2014. "Regional analysis of the impact of inward foreign direct investment on economic growth in the Chinese electronic industry," Applied Economics, Taylor & Francis Journals, vol. 46(22), pages 2576-2592, August.
    • Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2576-2592
    DOI: 10.1080/00036846.2014.907478
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    References listed on IDEAS

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    1. Long, Cheryl & Hale, Galina, 2006. "What Determines Technological Spillovers of Foreign Direct Investment: Evidence from China," Center Discussion Papers 28412, Yale University, Economic Growth Center.
    2. Ajit Singh, 2005. "FDI, Globalisation and Economic Development - Towards Reforming National and International Rules of the Game," Working Papers wp304, Centre for Business Research, University of Cambridge.
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    Cited by:

    1. Yiyang Chen & Fuxin Zhang, 2018. "Fiscal Expenditure and Education Quality in China: A Regional Heterogeneity Analysis," European Journal of Marketing and Economics Articles, Revistia Research and Publishing, vol. 1, ejme_v1_i.
    2. Oltiana Muharremi, 2020. "Discussion: Challenges and Recent Developments of Foreign Direct Investments in Albania and Western Balkan Countries," Central European Business Review, Prague University of Economics and Business, vol. 2020(4), pages 96-111.
    3. Seema Wati Narayan, 2019. "Does Fintech Matter For Indonesia’S Economic Growth?," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 22(4), pages 437-456, December.
    4. Peter N. Kiriri, 2019. "Consumer Perception: Animosity, Ethnocentrism and Willingness to Buy Chinese Products," European Journal of Marketing and Economics Articles, Revistia Research and Publishing, vol. 2, ejme_v2_i.

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