Revisiting the FDI-led growth Hypothesis: The case of China

Yalta, A. Yasemin

doi:10.1016/j.econmod.2012.11.030

Cited by 63 publications

(35 citation statements)

References 33 publications

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“…Therefore, finance development and trade openness are supporting non-oil economic growth in the long run. It is recognized that financial development is an important prerequisite for FDI to positively influence economic growth in the long run because the financial system can promote the efficient allocation of resources (Yalta 2013). The negative impact of FDI may be due to the nature of FDI inflows and their instability 2 in Saudi Arabia.…”

Section: Results Of Ardl Modelsmentioning

confidence: 99%

The Impacts of Domestic and Foreign Direct Investments on Economic Growth in Saudi Arabia

Belloumi

Alshehry

2018

Economies

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This paper investigates the causal links between domestic capital investment, foreign direct investment (FDI), and economic growth in Saudi Arabia over the period 1970-2015 by using the autoregressive distributed lag (ARDL) bounds testing to cointegration approach. The fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS), and the canonical cointegrating regression (CCR) are employed to check the robustness of the ARDL long run estimates. The results show that in the long term there are negative bidirectional causality between non-oil GDP growth and FDI, negative bidirectional causality between non-oil GDP growth and domestic capital investment, and bidirectional causality between FDI and domestic capital investment. FDI affects negatively domestic capital investment in the short run, whereas domestic capital investment affects negatively FDI in the long run. Both finance development and trade openness affect positively non-oil GDP growth, FDI inflows and domestic capital investment in the long run. The findings are important for Saudi policy makers to undertake the effective policies that can promote and lead domestic and foreign investments to enhance economic growth in the country.

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Section: Results Of Ardl Modelsmentioning

confidence: 99%

The Impacts of Domestic and Foreign Direct Investments on Economic Growth in Saudi Arabia

Belloumi

Alshehry

2018

Economies

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“…This paper used co-integration techniques for 28 countries and suggested that there is no causal relation between the FDI and GDP growth rate. Yalta [12] investigated the causal relationship between foreign direct investment and gross domestic product in China for the 1982-2008 period, and showed that a statistically significant relationship between FDI and GDP growth did not exist. Lian and Ma [13] also found that FDI did not lead to economic growth in the western region of China using time-series data from 1986 to 2010.…”

Section: Literature Overviewmentioning

confidence: 99%

Does Foreign Direct Investment Affect Green Growth? Evidence from China’s Experience

Yue

Yang

2016

Sustainability

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Foreign Direct Investment (FDI) not only affects the economic growth but also affects the environmental protection of the host country. With China's background of pursuing green growth, we need to consider the performance of FDI from the economic and environmental benefit aspects. On this basis, using slacks-based measure directional distance function (SBMDDF) to build up green growth efficiency, economic efficiency and environmental efficiency indexes, empirical research on FDI in 104 Chinese cities from 2004 to 2011 has shown that: (1) Different cities have differences in their green growth efficiency. Shenzhen city is always efficient in green economic growth. (2) Overall, FDI is positive on Chinese cities' green growth. (3) When the green growth efficiency is broken down into economic efficiency and environmental efficiency, FDI promotes China's economic green growth through both environmental benefits and economic benefits. (4) The effect of FDI differs in different sectors. FDI in the emission-intensive sector promotes green efficiency mainly through the improvement of economic efficiency. FDI in the non-emission-intensive sector promotes economic efficiency, environmental efficiency and green efficiency.

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“…First, the direct spillover effects as capital accumulation, or the indirect effects such as technology and knowledge transfer does not happen as predicted by endogenous growth theory and the possibility of negative spillover effects (Yalta, 2013). This may happen because multinational companies try to protect their specific knowledge or foreign companies reduce the productivity of domestic companies through the effects of competition.…”

Section: Causality Testmentioning

confidence: 99%

Model of Causality Between Fdi and Gross Domestic Product on Asean-5 Countries From 1980-2014

Supriyadi

Satria

2017

JIAE

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The research examines the relationship between Foreign Direct Investment (FDI) and Gross Domestic Product (GDP) for ASEAN-5 countries between the periods of 1980 to 2014. The study uses a Toda-Yamamoto granger causality model to test the causality between the FDI and the GDP. The results show that the ASEAN countries are differently in responding the impacts of FDI to the GDP. In general, the FDI leads to GNP in Singapore and Thailand while, in Indonesia and Malaysia, the GNP leads to FDI. In the case of Philippines, there is no causality relationship between the two variables found.

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Revisiting the FDI-led growth Hypothesis: The case of China

Cited by 63 publications

References 33 publications

The Impacts of Domestic and Foreign Direct Investments on Economic Growth in Saudi Arabia

The Impacts of Domestic and Foreign Direct Investments on Economic Growth in Saudi Arabia

Does Foreign Direct Investment Affect Green Growth? Evidence from China’s Experience

Model of Causality Between Fdi and Gross Domestic Product on Asean-5 Countries From 1980-2014

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