The Impact of FDI on the Productivity of Chinese Economic Regions

Abstract

This paper, based on the 51 prefecture-level cities of three economic regions (the Pearl River Delta, the Yangtze River Delta, and the BoHai Rim) for the period 2001–2007, found that a city's own FDI can only contribute positively to technology, but not inefficiency. In addition, its influence on frontier and inefficiency are insignificantly different among these economic regions. Furthermore, the contribution of other cities' lagged FDI within the same region on inefficiency in the Pearl River Delta is significantly larger than that in the BoHai Rim and the Yangtze River Delta, which cannot be derived from the data of provincial levels.