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Is China different? A meta-analysis of the effects of foreign direct investment on domestic firms

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  • Christer Ljungwall
  • Patrik Gustavsson Tingvall

Abstract

Empirical evidence suggests that China has benefited from foreign direct investment (FDI). An important question that remains unanswered is whether China has benefited more from FDI than other countries in general, and other transition and developing countries in particular. This paper investigates this issue by performing a meta-analysis on a sample of 67 country-specific studies yielding 137 observations that have gauged the link between FDI and measures of economic growth. The results suggest that the impact of FDI is, on average, more positively significant for China than for the full sample of countries, but that the difference between China and other transition economies is less clear.

Suggested Citation

  • Christer Ljungwall & Patrik Gustavsson Tingvall, 2010. "Is China different? A meta-analysis of the effects of foreign direct investment on domestic firms," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 8(4), pages 353-371.
    • Handle: RePEc:taf:jocebs:v:8:y:2010:i:4:p:353-371
    DOI: 10.1080/14765284.2010.513175
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    1. Ljungwall, Christer & Tingvall, Patrik Gustavsson, 2015. "Is China different? A meta-analysis of the growth-enhancing effect from R&D spending in China," China Economic Review, Elsevier, vol. 36(C), pages 272-278.
    2. Christer Ljungwall & Patrik Gustavsson Tingvall, 2013. "Is China different? A meta-analysis of China's financial sector development," Applied Economics Letters, Taylor & Francis Journals, vol. 20(7), pages 715-718, May.
    3. Kokko, Ari & Tingvall, Patrik Gustavsson & Videnord, Josefin, 2015. "The growth effects of R&D spending in the EU: A meta-analysis," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 9, pages 1-26.
    4. Gunby, Philip & Jin, Yinghua & Robert Reed, W., 2017. "Did FDI Really Cause Chinese Economic Growth? A Meta-Analysis," World Development, Elsevier, vol. 90(C), pages 242-255.
    5. Tingvall, Patrik Gustavsson & Ljungwall, Christer, 2012. "Is China different? A meta-analysis of export-led growth," Economics Letters, Elsevier, vol. 115(2), pages 177-179.
    6. Xinxin Ma & Ichiro Iwasaki, 2021. "Does communist party membership bring a wage premium in China? a meta-analysis," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 19(1), pages 55-94, January.
    7. Taotao Chen & Ari Kokko & Patrik Gustavsson Tingvall, 2011. "FDI and spillovers in China: non-linearity and absorptive capacity," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 9(1), pages 1-22.
    8. Fernhaber, Stephanie & Li, Dan & Wu, Aiqi, 2019. "Internationalization of emerging-economy new ventures: The role of within-country differences," Business Horizons, Elsevier, vol. 62(4), pages 497-507.
    9. Samdrup, Tshering & Fogarty, James & Pandit, Ram & Iftekhar, Md. Sayed & Dorjee, Kinlay, 2023. "Does FDI in agriculture in developing countries promote food security? Evidence from meta-regression analysis," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1255-1272.
    10. Ljungwall, Christer & Gustavsson Tingvall, Patrik, 2014. "No. 233 Is China Different? A Meta-Analysis of the Growth-enhancing Effect from R&D Spending in China," Ratio Working Papers 233, The Ratio Institute.
    11. Selwyn J. V. Moons & Peter A. G. Bergeijk, 2017. "Does Economic Diplomacy Work? A Meta-analysis of Its Impact on Trade and Investment," The World Economy, Wiley Blackwell, vol. 40(2), pages 336-368, February.
    12. Li, Shi & Urata, Shujiro & Zhao, Long, 2024. "Does the quality of bilateral investment treaties matter for outward foreign direct investment?," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 207-218.

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    More about this item

    Keywords

    meta-analysis; foreign direct investment; economic growth; China;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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