Empirical Study on the Macroeconomic Performance of China''''s FDI
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Abstract:
The problem on performance of foreign direct investment is the heart of matters, which are further expanding foreign direct investment in China and strengthen international competitive ability of Chinese enterprises. The empirical study on macro performance shows that foreign direct investment in China has made no difference to economic growth and export promotion, both long term and shot term; for a long term, it has no remarkable effect on foreign exchange reserve, but remarkable and negative effect in a short term. It has no any effect on domestic investment in long or short term. There is no balance relation in long term and no cause and effect relation either between foreign direct investment and FDI inflow, or between foreign direct investment and total factor productivity. Foreign direct investment in China has no remarkable effect on macro performance.
