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Facts About and Impacts of FDI on China and the World Economy
Yuqing Xing

China: An International Journal, Volume 8, Number 2, September 2010, pp. 309-327 (Article) Published by NUS Press Pte Ltd DOI: 10.1353/chn.2010.0002

For additional information about this article http://muse.jhu.edu/journals/chn/summary/v008/8.2.xing.html Access Provided by Hamline University at 06/25/12 7:34PM GMT

Facts About and Impacts of FDI on China and the World Economy
Yuqing XING

This paper provides a comprehensive review of foreign direct investment in China over the last three decades. It reviews the growth, sources and distribution of FDI in China and analyses factors determining FDI inflows. It summarises the contributions of FDI to the Chinese economy in terms of economic growth, total factor productivity, exports and technology progress. Finally, the paper discusses potential impacts of FDI in China on the rest of the world in terms of FDI-competing countries and FDI source countries.

(FDI) among all developing countries, China received a cumulative total of USD854 billion in FDI from 1979 to 2008 and benefitted tremendously from both tangible and intangible assets associated with FDI inflows. In fact, in the modern history of economic development, no other country has ever benefitted, and continues to benefit, from FDI as much as China. There is a consensus among academic scholars specialising in the Chinese economy that, over the last three decades, FDI has been a critical engine driving the Chinese economy. In literature pertaining to the growth of the post-reform Chinese economy, and policy discussions about China’s successful transition towards a market-oriented economy, FDI has always been one of the focal points.
ABOUT THE AUTHORS

The largest recipient of foreign direct investment

Yuqing Xing (yuqing_xing@grips.ac.jp) is Professor of Economics at the...

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