TAILIEUCHUNG - The paradox of unequal regional investment and equal regional economic growth in China

The article focuses on the regional economic growth as a result of the direct foreign investment in the region and its spill-over effects on neighboring regions. The unequal distribution of foreign direct investment should in principle tends to enlarge the regional economic differences. The article, however, shows that this is not the result of the investment. | 5 June 1998 C Chinajie The Paradox of Unequal Regional Investment and Equal Regional Economic Growth in China Foreign Direct Investment and Unequal Regional Economic Growth in China Jie Zhang Research Center of Bornholm Stenbrudsvej 55 3730 Nex0 Denmark Tel 45 5644 1144 Fax 45 5649 4624 Email jie@ Gustav Kristensen Institute of Economics Odense University DK-5230 Odense M Denmark Tel 45 6557 2114 Fax 45 6595 7766 Emails guk@ Abstract China s policy on Special Economic Zones has attracted direct foreign investment to China. The investment is very unequally distributed on China s 30 regions. The article focuses on the regional economic growth as a result of the direct foreign investment in the region and its spill-over effects on neighboring regions. The unequal distribution of foreign direct investment should in principle tends to enlarge the regional economic differences. The article however shows that this is not the result of the investment. The empirical findings highlight the impact of foreign direct investment on the Chinese regional economies in transition. Paper prepared for the 38th Congress of the European Regional Science Association Vienna 28 August - 1 September. 1 1. INTRODUCTION China took an economic reform and open-door policy in 1978. In July 1979 at the first step China created four special economic zones SEZ at Shenzhen Zhuhai and Shantou in the Guangdong province and at Xiamen in the Fujian province. Later in 1988 China separated Hainan from the Guangdong province and set up Hainan as the fifth special economic zone in China. The central government has further built up fourteen economic and technological development zones within the eleven provinces along the coastal area in 1984. Since then the Chinese economy has steadily grown and has experienced even faster growth rate during 1992-1996 partly as a result of direct foreign investments. However the investments have been unequally distributed on the 30 Chinese regions . .

• Kinh tế học
• Unequal regional investment
• Equal regional economic growth
• Economic growth
• Regional growth
• The model formulated
• The model for investment and growth
• Foreign direct investment
• VAR model
• FDI stimulates export
• Important prerequisites
• Regression model
• FDI in Nghe An province
• Labor productivity
• Sustainable development
• Vector error correction model
• Vice versa
• Impacts of globalization on industrial growth
• Evidence from kof globalization analysis for asian countries
• KOF globalization analysis
• Cobb Douglas model
• CO2 emission
• Ekc hypothesis
• Ardl model