Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/174899 
Year of Publication: 
2018
Series/Report no.: 
Economics Discussion Papers No. 2018-20
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
This study is the first to estimate a system of simultaneous gravity equations for Chinese exports, imports and foreign direct investment (FDI) using a sample of 167 countries over the period 2003-2012. The main results indicate that trade and outward FDI are complementary. In particular, the authors show that outward Chinese FDI is related to higher exports and imports and that China trades more with countries hosting Chinese FDI. Results are also robust to the use of instrumental variables. Therefore, the popular claim that Chinese investment could be detrimental for developing countries is not supported by the data.
Subjects: 
international trade
foreign direct investment
China
JEL: 
F14
F21
F59
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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