Abstract
This study asks two central questions: (1) how we can explain the dynamic relationships between economic growth and FDI distributions at national and regional levels; (2) what determines Chinese rapid economic growth and unprecedented volume of FDI at national and regional levels. Two empirical models are developed to test the two main hypotheses of FDI-led growth model and growth-driven FDI model based on time-series and cross-provincial data of 174 observations (29 provinces for 6 years, 1995–2000). The results confirm main findings of earlier studies on the links between FDI and economic growth in China, but disapprove the impact of human capital, historical, and geographical conditions on FDI distributions in the regions during the research period.
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Dr. Han Gyu Lheem received his doctorate in political science from the University of Tennessee (UTK). He is currently teaching in the Department of Political Science at UTK and working as a research fellow in Peacebuilding Institute of East Tennessee. His research interests have focused on Korean, Chinese and Japanese politics, political economy of East Asia, international environmental politics, comparative social philosophies, and econometric techniques and modeling. Sujian Guo is an assistant professor in political science at San Francisco State University. His research interests have focused on communist and post-communist studies, democratic transition, Chinese politics, and political economy of East and Southeast Asia. He has published more than 20 articles both in American and Chinese journals. He is the author ofPost-Mao China: from Totalitarianism to Authoritarianism? The authors would like to thank Drs. Yang Zhong, Robert Gorman, David Houston, and anonymous referees for their valuable comments on the earlier draft of this paper. Thanks also go to Jim Foster and PIET (Peacebuilding Instutute of East Tennessee).
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Lheem, H.G., Guo, S. Political economy of FDI and economic growth in China: A longitudinal test at provincial level. J OF CHIN POLIT SCI 9, 43–62 (2004). https://doi.org/10.1007/BF02876956
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DOI: https://doi.org/10.1007/BF02876956