Foreign Direct Investment and Regional Export Performance in China

Abstract

This paper investigates the impact of foreign direct investment (FDI) on the export performance of China at the provincial level. First, it presents a theoretical discussion of the impact of FDI on foreign trade, and then an empirical study of the impact of FDI on the export performance of regions in Chin. It has been found that the impact of FDI on exports differs across three macro-regions in China. The effect is stronger in the coastal region than in the inland regions. Although FDI shows a positive and significant impact on exports from the central region, its impact on the western region is found to be insignificant. Copyright 2001 BlackwellPublishers

Impact of foreign direct investments on Serbian industry

“…These model specifications are modifications and extensions of the model estimates on the aggregate, macroeconomic level, which were presented by Sun (2001) and Zhang and Song (2000). Both papers were using the natural logarithm of real exports as the dependent variable and the logarithm of the FDI stock with a lag of one year.…”

“…Both papers were using the natural logarithm of real exports as the dependent variable and the logarithm of the FDI stock with a lag of one year. Sun (2001) also used domestic investment, and the real effective exchange rate was included in both papers as an independent variable. Productivity and unit labour costs are added as variables, because they are expected to be important indicators of the competitiveness of the export industry (Vuksic, 2005, p.20).…”

Is there a link between BRIC foreign direct investment and SADC export performance?

“…Against the backdrop of the growing literature on the FDI-export link, recent studies have used causality tests and regression models to test the relationship between FDI and export performance in developed, developing and African countries (Bezuidenhout & Naudé, 2010;Chédor et al, 2002;Dritsaki et al, 2004;Sun, 2001;Wong & Tang, 2007). Much of this research concludes that a bi-directional causal relationship exists, indicating that inward FDI has a positive influence on exports, and vice versa.…”

The mediating role of export-oriented Japanese foreign direct investment in China

“…There is a growing body of literature (XING & ZHAO, 2008;YU & ZHAO, 2008;CHEN & WANG, 2007;LIU, WANG & WEI, 2001;SUN, 2001;ZHANG & Felmingham, 2001;ZHANG & SONG, 2000) on the relationships of FDI and exports for China's exports demand. However, the linkages (i.e., unidirectional or bidirectional relationships) between FDI and exports in China's exports demand model are relatively understudied.…”