Foreign Direct Investment, Domestic Capital and China's Economic Growth

Author: Luo Changyuan
Publisher:
Publish Date: 2005-09-01
Features: This book primarily discusses how foreign direct investment (FDI) impacts China's economic growth in the context of transformation. It is a topic of interest to many economic theory researchers. The author constructs a theoretical framework of "private entering, state retreating" and combines it with the current state of China's financial system, finding that FDI has a positive effect on China's economic growth but an adverse impact on economic transformation. From the perspective of domestic capital, understanding the impact of FDI on China's transformation and growth, and combining this special effect with the current state of China's financial system, provides a new perspective for theoretical research. The author employs inter-provincial panel data for empirical research and innovates in research methods.