China's post-economic reform growth: The role of FDI and productivity progress

Deepening Reform for China's Long-term Growth and Development

“…This implies that local economic and technological conditions affect the diffusion of knowledge spillovers from FDI to the local economy. This finding is consistent with those of Borensztein et al (1998), de Mello (1997 and Tuan et al (2009). Fourth, the regression results provide strong empirical evidence that FDI not only directly contributes to economic growth through capital augmentation and technological progress, but also indirectly contributes to economic growth through knowledge spillovers on the local economy in the developed provinces.…”

The Impact of FDI on China’s Regional Economic Growth

“…This implies that local economic and technological conditions affect the diffusion of knowledge spillovers from FDI to the local economy. This finding is consistent with those of Borensztein et al (1998), de Mello (1997, 1999 and Tuan et al (2009). Fourth, the regression results provide strong empirical evidence that FDI not only directly contributes to economic growth through capital augmentation and technological progress, but also indirectly contributes to economic growth through knowledge spillovers on the local economy in the developed provinces.…”

“…As a result, FDI has not only assisted in overcoming shortage of capital, it has also stimulated economic growth through complementing domestic investment in China. Tuan et al (2009) investigate the role inward FDI plays in the process of regional development and the channels through which economic growth would be affected by using city-level (cities in the Yangtze River Delta and the Pearl River Delta) panel dataset estimations for the period since China's economic opening and reform. While the study finds that FDI exerted spillover effects and affected TFP growth of the recipients, major technology and knowledge-related factors including R&D and human capital also played critical roles in TFP enhancement and regional growth.…”

Comparative Analysis for Science,Technology and Innovation Policy; Lessons Learned from Some Selected Countries (Brazil, India, China, South Korea and South Africa) for Other LdCs Like Iran

“…The Chinese government was eager to build infrastructure, including highways, ports, telecommunications system, etc… This required foreign capital and modern technology that can be supplied by Foreign Direct Investment (FDI) (Tuan et al, 2009). China has become a major destination for foreign direct investment (FDI) and a trading nation of global rank, with an increasing share of high-technology products in its export structure.…”