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FDI, Regional Differences and Economic Growth: Panel Data Evidence from China

In: The Challenge of International Business

Author

Listed:
  • Jeremy Clegg
  • Chengqi Wang
  • Adam R. Cross

Abstract

Development economists have long argued that countries pursuing externally oriented development strategies are more likely to achieve higher rates of economic growth than those that are internally focused. A number of studies have examined the relationship between inward FDI and economic growth in the developing host countries.1 A generally accepted conclusion is that FDI has played a significant role in promoting economic growth in host countries because FDI represents ‘the transmission to the host country of a package of capital, managerial skills, and technical skills’ (Johnson, 1972, p. 2). An interesting finding of previous studies is that the economic and technological conditions of a recipient economy influence the extent to which FDI contributes to growth.

Suggested Citation

  • Jeremy Clegg & Chengqi Wang & Adam R. Cross, 2004. "FDI, Regional Differences and Economic Growth: Panel Data Evidence from China," Palgrave Macmillan Books, in: The Challenge of International Business, chapter 12, pages 220-241, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-50864-4_12
    DOI: 10.1057/9780230508644_12
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    Cited by:

    1. Manasseh Charles O. & Nwakoby Ifeoma C. & Okanya Ogochukwu C. & Ifediora Chuka U. & Nzidee Williams A., 2023. "The Impact of Foreign Direct Investment and Oil Revenue on Economic Growth in Nigeria," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 33(3), pages 61-85, September.
    2. Nam, Hyun-Jung & Bang, Jeongseok & Ryu, Doojin, 2023. "Paradox of trade openness: The moderated mediating role of governance," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 89(C).
    3. Abdul Sattar & Temesgen Hordofa Tolassa & Muhammad Noshab Hussain & Muhammad Ilyas, 2022. "Environmental Effects of China’s Overseas Direct Investment in South Asia," SAGE Open, , vol. 12(1), pages 21582440221, February.

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