FDI and Economic Growth: An Endogenous Nexus and the Risk of Foreign Capitalisation in the Coastal Region of China

This study focuses on the dynamic relationship between inward FDI and economic growth in the coastal region of China. Three sets of empirical models are developed to examine the two main hypotheses of FDI-led growth and growth-driven FDI, as well as the crowding in effect, which are based on a sampl...

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Main Author: Chen, Chunrong
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2008
Subjects:
Online Access:https://eprints.nottingham.ac.uk/22025/
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author Chen, Chunrong
author_facet Chen, Chunrong
author_sort Chen, Chunrong
building Nottingham Research Data Repository
collection Online Access
description This study focuses on the dynamic relationship between inward FDI and economic growth in the coastal region of China. Three sets of empirical models are developed to examine the two main hypotheses of FDI-led growth and growth-driven FDI, as well as the crowding in effect, which are based on a sample of 9 provinces panel data during 1995 and 2007 (117 observations). By using the fixed effects estimation, the results confirm essential findings of earlier studies on the positive nexus of FDI and economic growth and provincial heterogeneity across the coastal region of China. However, the interaction term of FDI and human capital is disapproved in the study, in spite of schooling factor yielding favourable values. In addition, empirical results suggest that FDI is an important vehicle for inducing domestic investment instead of detracting it. Finally, constructive recommendations for the local government and multinational enterprises are provided on the basis of findings and risk capitalisation issues.
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spelling nottingham-220252018-01-31T16:25:41Z https://eprints.nottingham.ac.uk/22025/ FDI and Economic Growth: An Endogenous Nexus and the Risk of Foreign Capitalisation in the Coastal Region of China Chen, Chunrong This study focuses on the dynamic relationship between inward FDI and economic growth in the coastal region of China. Three sets of empirical models are developed to examine the two main hypotheses of FDI-led growth and growth-driven FDI, as well as the crowding in effect, which are based on a sample of 9 provinces panel data during 1995 and 2007 (117 observations). By using the fixed effects estimation, the results confirm essential findings of earlier studies on the positive nexus of FDI and economic growth and provincial heterogeneity across the coastal region of China. However, the interaction term of FDI and human capital is disapproved in the study, in spite of schooling factor yielding favourable values. In addition, empirical results suggest that FDI is an important vehicle for inducing domestic investment instead of detracting it. Finally, constructive recommendations for the local government and multinational enterprises are provided on the basis of findings and risk capitalisation issues. 2008 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/22025/1/08MAlixcc25.pdf Chen, Chunrong (2008) FDI and Economic Growth: An Endogenous Nexus and the Risk of Foreign Capitalisation in the Coastal Region of China. [Dissertation (University of Nottingham only)] (Unpublished) FDI Economic Growth China Risk Capitalisation
spellingShingle FDI
Economic Growth
China
Risk Capitalisation
Chen, Chunrong
FDI and Economic Growth: An Endogenous Nexus and the Risk of Foreign Capitalisation in the Coastal Region of China
title FDI and Economic Growth: An Endogenous Nexus and the Risk of Foreign Capitalisation in the Coastal Region of China
title_full FDI and Economic Growth: An Endogenous Nexus and the Risk of Foreign Capitalisation in the Coastal Region of China
title_fullStr FDI and Economic Growth: An Endogenous Nexus and the Risk of Foreign Capitalisation in the Coastal Region of China
title_full_unstemmed FDI and Economic Growth: An Endogenous Nexus and the Risk of Foreign Capitalisation in the Coastal Region of China
title_short FDI and Economic Growth: An Endogenous Nexus and the Risk of Foreign Capitalisation in the Coastal Region of China
title_sort fdi and economic growth: an endogenous nexus and the risk of foreign capitalisation in the coastal region of china
topic FDI
Economic Growth
China
Risk Capitalisation
url https://eprints.nottingham.ac.uk/22025/