Abstract
This study evaluates the causal links between inward foreign direct investment (FDI) and exports from the PRC as a whole and also from its provinces. The national study is based on a monthly time series for the years 1986 to 1999 and cointegration/error correction modelling (ECM) techniques are used to conclude that for the PRC as a whole the relationship between FDI and exports is bidirectional. The relationship between inward FDI/exports for the PRC's provinces, cities, and autonomous regions is analysed in three panel data sets: the high FDI recipients (HFDI, n=144) concentrated along the Chinese coast, medium FDI recipients (MFDI, n=192) in Central China, and the low FDI group (LFDI, n=128) in Western China. The panel data studies reveal that in the HFDI and LFDI, bidirectional causality applies, while exports Granger cause FDI in the MFDI. All regional results are confirmed by Sims tests. The policy implications are explained.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
