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The Research On Disparities Of Foreign Direct Investment & Export Trade Affecting Regional Economy Growth In China

Posted on:2006-11-27Degree:DoctorType:Dissertation
Country:ChinaCandidate:J C LiFull Text:PDF
GTID:1119360155472580Subject:Technical Economics and Management
Abstract/Summary:PDF Full Text Request
The economy growth is an eternal topic in economics. Researching on FDI & International Trade and Regional Economy is a realistic subject. With a rapid economy growth, China's economy is characterized gradually by an uneven regional development pattern and structural disparities. Thus, it causes disparities of the regional economy to extend quickly, and becomes nowadays the most outstanding contradictory in China's economy and society. Under the background of the economy globalism, the level of FDI & international trade directly affects the regional economy growth. By the year of 2001, FDI/TSI (FDI/Total Social Investment) and Export/GDP are respectively up to 20.5% and 32.5% in the eastern part, up to 2.2% and 4.6% in the western part. So, it is necessary to pay more attention to researching regional disparities of FDI & international trade and effecting on the regional economy growth. This paper is try to target for four tasks: (1) evaluate the roles played by FDI and foreign trade in the west and the east regions, (2) find out the determinants of regional economic growth, (3) how to accelerate the development of the western region, and (4) clarify the opening up strategies which should be taken by the eastern and western regions. This paper employed new theories (such as the endogenous growth theory, new trade theory and vertical specialization theory), new methods (such as Vector Error Correcting Model, Vector Auto-regression Model, Principal Component Regression China, Chongqing Foreign Trade & Economic Relations Commission, and Chongqing Enterprise Survey Team) for this study. This paper first presented new theoretical models on the relationships between FDI, international trade and economic growth. Then this paper carried out empirical studies to confirm our models. Based on the new findings, the paper finally derived the policy implications for future development of the east and the west regions. The main works with creative contents are: (1) The theory mode that economic growth depends on FDI and export has been projected. With the application of interior economic growth theory, we will be able to have a better understanding on FDI and export contribution to economic growth and on the various ways to improve economic performance. A comprehensive research on the relationship between FDI and export and economic growth has been carried out and it has demonstrated that FDI and export will decide the economic growth of the region by affecting turn-over efficiency and initial investment. (2) The FDI spillover effect in China has also been examined. With the same theory mode, an analysis on the FDI departmental spillover effect and the gap between FDI and domestic investment has been completed; through the way of combining evidence with descriptive quantity analysis, we have analyzed the FDI departmental spillover effect and studied the characteristics of the FDI spillover effect across the region. This sort of research is more comprehensive and advanced than those in the same circle. By using the method of PCR, we have solved the possible multicollinearity problem; to make up the flaws in current data, the research method of questionnaire among enterprises has been selected to make sure the research is more accurate and effective based on the massive evidence and data. This research has revealed that FDI in the east and the west has not had push-out effect on the domestic investment. Instead the spillover effect is quite obvious across the provinces (region) in the east and west. The effectiveness of 'technology spillover'in FDI is deeply affected by the way of talent flow and industry facilities. (3) A conclusion of 'export-oriented economy 'hypothesis has been made. At the national and the east and west regional level, we have completed the proof test on the relationship between export and economic growth and also on the way how the export promotes economic growth in various provinces and cities. Through Granger cause-effect test during the research, we have been able to solve the problems of the statistics and the confusing cause-effect relations between export and economic growth. Also through VECM, we have studied the one-side, two-side, cause-effect in short-term and long-term relationship between export and economic growth. In doing this, we have minimized the instability due to time sequence and avoided the fake relations between them. Also we have grasped the dynamic relation accurately within the target system in both short and long term. It has a thorough application to VECM compared with other research in the same circle. During the process of verifying the stability of GDP, the investment and export data, we have edited the programs called 'Unit Root Mode& Filtration'which can improve the quality and efficiency of data process. The test result shows as for the whole country, export does not account for GDP's Granger nor support the hypothesis of 'export leading economic growth'; the mode of 'the export-oriented economic growth'is very appealing in the east whilst the hypothesis is proved opposite to cause-effect relation in the west, which is economic growth promotes export. The different quantity and quality in export in various regions are the important factors which may cause the economic imbalance.(4) The policy proposals about promoting FDI and international trade in western parts have been put forward. It is showed that the western parts should pay attention to opening toward domestic and abroad, strengthen cooperation with eastern parts; encourage FDI enterprise to form a complete set and transfer manpower to domestic enterprises; emphasis on cultivating industry investment environment and lead FDI to come in; build up the supporting system for promoting international trade and carry out export development strategy.
Keywords/Search Tags:Regional Economy, Economy Growth, FDI, Export Trade
PDF Full Text Request
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