Relationships Between Economic Growth, Foreign Direct Investment and Trade: Evidence from China

Xiaohui Liu; Peter Burridge; Peter Sinclair

doi:10.1080/00036840110100835

Relationships Between Economic Growth, Foreign Direct Investment and Trade: Evidence from China

Xiaohui Liu, Peter Burridge, Peter Sinclair

Research output: Contribution to journal › Article › peer-review

210 Citations (Scopus)

Abstract

This study investigates the causal links between trade, economic growth and inward foreign direct investment (FDI) in China at the aggregate level. The integration and cointegration properties of quarterly data are analysed. Long-run relationships between growth, exports, imports and FDI are identified in a cointegration framework, in which this paper finds bi-directional causality between economic growth, FDI and exports. Economic development, exports and FDI appear to be mutually reinforcing under the open-door policy.

Original language	English
Pages (from-to)	1433-1440
Number of pages	8
Journal	Applied Economics
Volume	34
Issue number	11
DOIs	https://doi.org/10.1080/00036840110100835
Publication status	Published - 20 Jul 2002

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abstract = "This study investigates the causal links between trade, economic growth and inward foreign direct investment (FDI) in China at the aggregate level. The integration and cointegration properties of quarterly data are analysed. Long-run relationships between growth, exports, imports and FDI are identified in a cointegration framework, in which this paper finds bi-directional causality between economic growth, FDI and exports. Economic development, exports and FDI appear to be mutually reinforcing under the open-door policy.",

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Relationships Between Economic Growth, Foreign Direct Investment and Trade: Evidence from China

Abstract

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