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The Effects Of Direct Investment From Hongkong, Macao And Taiwan On China's Economy

Posted on:2006-06-19Degree:MasterType:Thesis
Country:ChinaCandidate:S G YuFull Text:PDF
GTID:2179360182471796Subject:Western economics
Abstract/Summary:PDF Full Text Request
Using panel data, we examine the spillover effects of direct invest from Hongkong, Macao and Taiwan, and examine the spillover effects of FDI from other countries. Regression coefficients suggests a positive and significant correlation between value-added of State-owned Units and FDI from Hongkong, Macao and Taiwan, but a negative and significant correlation between value-added of State-owned Units and FDI from other countries. We think that investors from Hongkong, Macao and Taiwan are associated with lower productivity, which the domestic enterprises can imitate easily. Domestic firms may be wiped out of the market and monopoly rents will simply be transferred from a domestic monopolist to a foreign monopolist. Analyzing from the motivation, direct investment from Hongkong, Macao and Taiwan is belong to a type of resource–seeking, but FDI from other countries is belong to a type of market-seeking. So as to the direct invest from Hongkong, Macao and Taiwan, the promotion effect to export surpass that to import. But to the other countries, it is on the contrary. And the promotion effects to both of export and import, the direct invest from Hongkong, Macao and Taiwan surpass the other countries. We also find that both of them have significantly promoted the economic growth of China. And if they are combining with human capital, the effects are more remarkable. From the analysis, we draw some conclusions. In order to gain more from the FDI, we should carry out more favorable policy to the direct invest from Hongkong, Macao and Taiwan, strengthen the accumulation of human capital, the digestion and absorption of advanced technology. Moreover, we should carry out anti-trust policy to found a national and competitiveness market.
Keywords/Search Tags:FDI, Direct investment from Hongkong, Macao and Taiwan, Spillover effect, Economic growth, Panel data
PDF Full Text Request
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