Economic growth, local industrial development and inter-regional spillovers from foreign direct investment: Evidence from China

Puman Ouyang and Shihe Fu ()

China Economic Review, 2012, vol. 23, issue 2, 445-460

Abstract: In many countries inward foreign direct investment (FDI) typically concentrates in a few regions. However, there is little empirical evidence on whether spatially concentrated FDI boosts economic growth in other regions within the same country. We use a dataset that covers 96% of Chinese cities from 1996 to 2004 and find that “inter-regional spillovers” from FDI concentrated in China's coastal cities have a positive and significant effect on the growth of inland cities. In addition, an inland city's industrial development affects its absorptive capacity to gain such inter-regional spillovers from coastal FDI.

Keywords: Foreign direct investment; Regional inequality; Inter-regional spillovers; Absorptive capacity; Growth (search for similar items in EconPapers)
JEL-codes: F21 O14 O18 O40 R12 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (49)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:23:y:2012:i:2:p:445-460

DOI: 10.1016/j.chieco.2012.03.005

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