This article empirically investigates the impact of inward foreign direct investment (FDI) on regional economic growth in the Chinese electronic industry (CEI). Utilizing a provincial-level panel data spanning the period 1989 to 2009, we specify and estimate an endogenous economic growth model for the CEI. Empirical results indicate that, for the coastal region, FDI inflows have been growth enhancing, while in the central and western regions the impact of FDI on economic growth is mixed, depending on the channel of capital flow. Results also indicate that exports, human capital, science and technology investment and fixed asset investment are growth enhancing, while unemployment and foreign R&D investment are growth impeding in the CEI.
This paper attempts to make conceptual and empirical clarifications between industrial convergence, integration and syncretic which are often used interchangeably in the current literature and few studies have clarified. Conceptually, this paper clarifies the concepts and defines that industrial integration is a process, while industrial convergence is an outcome and industrial syncretic, an effect. Employing the data spanning the period of 2005-2017 and covering China and other 64 countries which joined the Belt and Road (B&R) at the first round in 2014, this paper constructed different indexes to measure the development of industrial convergence, integration and syncretic and distinguish the varieties between those three concepts. The empirical results support the conceptual clarification and indicate that there are differences between the development of industrial convergence, integration and syncretic. Industrial convergence may not lead to industrial integration or syncretic, and vice versa. These findings are instructive as it would provide richer policy implications and also enlighten future research.
Based on endogenous growth theory, this paper first discusses the impact mechanism of the development and outward foreign direct investment (OFDI) in the financial sector on economic growth. Then, using provincial panel data spanning the period 2006-2016, we test the impact of financial development, with respect to financial correlation, stock and bond market size, and financial added value, on China's economic growth. We also employ the ratio of each province's bank credit, stock market size, bond issuance and financial innovation as the weight to examine whether financial OFDI is through different financial models' moderating effects to booster the domestic economy. The results show that the development of the credit system not only promotes the economic growth, but also serves as a channel with financial OFDI to produce positive moderating effects. In contrast, the development of the stock and bond markets and their moderating effect on foreign investment in the financial sector can promote China's economic growth, but it is not significant. Financial innovation is found to be positively correlated with economic growth.
In the foreign direct investment (FDI) literature, human capital is regarded as an important factor in augmenting FDI effects on economic growth in host counties. To test for this hypothesis, we develop an endogenous growth model that incorporates human capital development and learning-by-doing effects for examining the impact of FDI on the growth of the host economy. The theoretical explanation indicates that both the industrial and locational human capital augments FDI-growth effects.
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