Record Details

The Effect of Inward Foreign Direct Investment on Economic Growth in Chinese Provinces

Journal of Economic and Social Thought

View Archive Info
 
 
Field Value
 
Title The Effect of Inward Foreign Direct Investment on Economic Growth in Chinese Provinces
 
Creator TAGUCHI, Hiroyuki;

Saitama University


WANG, Yining;

Saitama University
 
Subject Inward foreign direct investment (FDI), Economic growth, Chinese provinces, Vector auto-regression estimation
F21, O47, O53
 
Description Abstract. This article examines the effect of inward foreign direct investment (FDI) on economic growth with a focus on Chinese provinces by conducting the Granger causality and impulse response tests in a vector auto-regression (VAR) estimation. The study contributes to the reviewed literature by examining the FDI effect in such comprehensive ways as demand-side and supply-side models, and by clearing the endogeneity problem of targeted variables under a VAR framework. The main findings of this study were as follows. First, the positive effect of FDI on economic growth in Chinese provinces was confirmed by all the model estimations: statistical, demand-side and supply-side models. Second, from the regional perspectives, the positive effect of FDI on economic growth was found in the eastern region, but not in the non-eastern region. Third, no crowding-out effect of FDI on domestic capital formation was identified both in demand-side and supply side analyses. Keywords. Inward foreign direct investment (FDI), Economic growth, Chinese provinces, Vector auto-regression estimation.JEL. F21, O47, O53.
 
Publisher Journal of Economic and Social Thought
Journal of Economic and Social Thought
 
Contributor —
 
Date 2017-12-28
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
 
Identifier http://www.kspjournals.org/index.php/JEST/article/view/1507
10.1453/jest.v4i4.1507
 
Source Journal of Economic and Social Thought; Vol 4, No 4 (2017): December; 387-399
Journal of Economic and Social Thought; Vol 4, No 4 (2017): December; 387-399
2149-0422
 
Language eng
 
Relation http://www.kspjournals.org/index.php/JEST/article/view/1507/1494
http://www.kspjournals.org/index.php/JEST/article/downloadSuppFile/1507/754
http://www.kspjournals.org/index.php/JEST/article/downloadSuppFile/1507/762
 
Rights Copyright (c) 2018 Journal of Economic and Social Thought
http://creativecommons.org/licenses/by-nc/4.0