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The Economic Effects of China’s OFDI in Indonesia

In: China’s Direct Investment in Indonesia (1990–2022)

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  • Kai Liu

    (Tsinghua University)

Abstract

With the development of China’s OFDI in Indonesia, Indonesian domestic stakeholders have doubts about the investment effects of Chinese-funded enterprises, and some scholars have publicly claimed that “Chinese investment has an erosive effect on the Indonesian economy”. In response to this view, this chapter systematically analyses the economic effects of China’s OFDI on Indonesia through empirical regression and three typical cases based on human capital theory, technology localization theory, and factor flow theory.

Suggested Citation

  • Kai Liu, 2024. "The Economic Effects of China’s OFDI in Indonesia," Contributions to Economics, in: China’s Direct Investment in Indonesia (1990–2022), chapter 0, pages 81-117, Springer.
    • Handle: RePEc:spr:conchp:978-981-97-7328-2_4
    DOI: 10.1007/978-981-97-7328-2_4
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