A Critical Assessment
Chapter 7: Conclusion and policy implications
A Critical Assessment
Foreign direct investment in China provides a valuable opportunity for both a theoretical study and an empirical analysis of the impacts of FDI on the economies of developing host countries in general and on China’s economy in particular. This study, as set out in Chapter 1, has analysed the impacts of FDI on regional economic growth, income inequality and urbanization development in China over the past three and a half decades. The results obtained from this study have provided considerable insights into the general issues of the impacts of FDI on developing countries which are hosts to FDI. In particular, the study has extended our knowledge of the impacts of FDI on China’s economy in three main aspects. First, and most importantly, it has allowed us to obtain a deeper understanding of the roles of FDI in China’s regional economic growth by investigating the contribution of FDI to host provinces’ economic growth directly through capital input and technological progress and indirectly through knowledge spillovers to the local economy; it has also indicated the interregional impacts of FDI, in particular FDI in coastal provinces, on the economic growth of inland provinces. The study has provided improved knowledge of the impacts of FDI on income inequality in China by investigating the impacts of FDI on host provinces’ urban–rural income inequality; the study has also granted insights into the interregional impact of FDI, with particular emphasis on the interregional impact of FDI in coastal provinces, on the urban–rural income inequality of...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.