Skip to main content
Article
Foreign direct investment and economic performance in transition economies: Evidence from Chinese provinces
Post-Communist Economies (2004)
  • Xiaowen Tian, University of Nottingham
  • Shuanglin Lin, University of Nebraska
  • Vai Io Lo
Abstract
Based upon a production junction with FDI representing updated technology from more developed, market-based economies, this study tests the hypothesis that FDI contributes to the economic growth of less developed, transition economies via technology updating, using data for 30 Chinese provinces from 1985 to 2000. It is found that provinces with a higher FDI ratio experienced faster technology updating and more rapid economic growth. The study suggests that less developed, transition economies should encourage FDI from more developed, market-based economies so as to accelerate technology updating and economic growth.
Keywords
  • foreign direct investment,
  • economic development,
  • transition economies,
  • industrialization,
  • technological development,
  • China
Publication Date
January 1, 2004
Citation Information
Xiaowen Tian, Shuanglin Lin and Vai Io Lo. "Foreign direct investment and economic performance in transition economies: Evidence from Chinese provinces" Post-Communist Economies (2004)
Available at: http://works.bepress.com/vai_lo/4/