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N° 2006-22 |
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| December 2006 |
| FDI in Chinese Cities: Spillovers and Impact on Growth |
Nicole Madariaga
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| We study the impact of FDI on growth performance. We rely on a data set of Chinese cities
between 1990 and 2002 to investigate the effects of FDI in the traditional growth regression
framework using the GMM estimator for dynamic panels. Our growth model incorporates
an explicit consideration of spatial dependence effects in the form of spatially lagged income
and FDI. Our results reveal that Chinese cities take advantage not only of FDI flows received
locally but also of FDI flows received by their neighbors. |
Abstract |
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| Growth; regional convergence; economic geography; foreign direct investment
China |
Keywords |
| E1; O1; O5; R1 |
JEL classification |
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