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Title:Foreign Direct Investment and Regional Growth in China PDF Logo
Authors:Huang, Shuo
Issue Date:2009
Series/Report no.:Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 14
Abstract:China has experienced rapid economic growth and the recent Global Economic Projections 2004 by the World Bank suggest that there is a continuation of Chinese growth of at lest 7 to 8 percent (World Bank, 2003). Nevertheless, on the background of rapid growth came increasing regional disparities. This paper uses the augmented Solow-Swan model of Mankiw, Romer and Weil (1992) to analyze data on provinces of China over the reform period 1978-2003. Our main finding is that FDI has a positive and statistically significant impact on economic growth as theory predicts and the augmented Solow-Swan model provides an excellent fit of the data. The other determinants are significant at one percent level and have the expected sign. However, the human capital is insignificant or the coefficient is negative.
Subjects:economic growth
conditional convergence
regional disparities
JEL:O18
R11
Document Type:Conference Paper
Appears in Collections:Proceedings of the German Development Economics Conference, 2009 (Frankfurt a.M.)

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