Do Inland Provinces Benefit from Coastal Foreign Direct Investment in China?

    Research output: Contribution to journalArticle

    Abstract

    Foreign direct investment (FDI) in China is heavily concentrated in the coastal regions. Do inland provinces benefit from coastal FDI? We use a provincial-level panel dataset and employ the fixed-effects instrumental variables regression technique to investigate the interregional spillovers from coastal FDI to inland provinces. The study finds that, on average, coastal FDI has a negative impact on the economic growth of inland provinces. In addition, depending on the different trade activities engaged in (i.e. whether processing trade or ordinary trade), coastal FDI has different impacts on the economic growth of inland provinces.
    Original languageEnglish
    Pages (from-to)22-41
    JournalChina and World Economy
    Volume23
    Issue number3
    DOIs
    Publication statusPublished - 2015

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