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Economic Growth, Industrial Development and the Inter-Regional Spillovers from Foreign Direct Investment, Evidence from China, 2009
"... Evidence from many countries indicates that foreign direct investment (FDI) typically concentrates in a few regions within the host country. This paper examines the extent and possible mechanisms by which spatially concentrated FDI in a developing country boosts economic growth in other regions. Usi ..."
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Evidence from many countries indicates that foreign direct investment (FDI) typically concentrates in a few regions within the host country. This paper examines the extent and possible mechanisms by which spatially concentrated FDI in a developing country boosts economic growth in other regions. Using a dataset that covers 96 % of Chinese cities from 1996-2004, this paper finds that “inter-regional spillovers ” from FDI concentrated in China’s coastal regions have a positive and significant effect on the growth of inland regions. In addition, such spillovers rely on an inland city’s industrial development, consistent with a role for backward and forward linkages.
“On Tyranny of Numbers” CAUSES OF LABOR PRODUCTIVITY IN ARGENTINA,
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