Foreign direct investment and labor productivity: New evidence from China as the host

Abstract

We use a pooled city-level data set, consisting of 2032 observations from 11 consecutive years, to examine the causal relationship between the intensity of FDI inflow and the increase of technical efficiency in various cities in China. The results confirm the existence of feedback effects between per capita FDI intensity and labor productivity. However, FDI intensity in terms of the geographical size of the city does not Grangercause the increase in labor productivity. Spillover efficiency to various cities in China is investigated in detail. We split the sample into coastal and inland cities, taking into consideration time lags. The feedback effects of labor productivity on inward FDI also are estimated statistically. Finally, we discuss the policy implications of our research.

Intermediary Products: FDI Strategies, Imports, Exports, and Trade Balances in Developed Economies

“…FDI is a plus. Higher levels of FDI lead to rising incomes, higher standards of living and increased productivity (Lehnert, Mamoun, & Hongxin, ; Zhu & Tan, ) while lower levels of FDI appear to lead to economic stagnation. However, for DCs, the message is less clear; our empirical results show higher levels of FDI are likely to be related to greater trade deficits while lower levels of FDI tend to be related to trade surpluses.…”

When Do Local Firms Benefit from Inward Foreign Direct Investment? A Longitudinal Study of China's Manufacturing Sector Covering 1998–2007

“…It further expanded its open regions from the initial four SEZs to an additional group of 14 coastal cities in 1984, including Guangzhou, Shanghai, and Tianjin, and later Hainan Island (in 1988). SEZs and open regions offer various benefits to foreign investors, including those related to trade, quotas, labor regulations, tax exemptions, and the duty‐free importation of raw materials and technologies (Park et al, ; Zhu & Tan, ). Because of their favorable locations, better infrastructures, and favored policies, these SEZs and coastal cities have been the largest recipients of inward FDI in China.…”

Yabancı Doğrudan Yatırımların İstihdam Üzerindeki Etkisi: Türkiye, Çin ve Hindistan Örneğinde Çoklu Yapısal Kırılmalı Eşbütünleşme Analizi

“…Bu yöntemde analize alınacak bütün serilerin I(1) olması gerekmektedir. Maki (2012) 1984;1986;1996;1999;Model 1 -8.30[-6.49]* 19861991;1996;2002;2004Model 2 -14.03[-8.86]* 19841989;1995;2000;2006Model 3 -7.79[-9.48] 19841989;1996;2002; …”

“…Model 0 -6.20 [-6.03]** 1982;1986;1989;1997;2007Model 1 -7.07[-6.49]* 19821986;1989;2001;2007Model 2 -8.43 [-8.86] 19841987;1989;1996;2002Model 3 -10.84 [-9.48]* 19891995;1987;2000; …”

“…Model 0 -6.72 [-6.30]* 1983;1988;1992;2001;Model 1 -8.17 [-6.49]* 19851993;2001;Model 2 -8.24 [-8.86] 19841992;1997;2000;2006Model 3 -5.61 [-9.48] 19851987;1994;2001;2009 Not: Köşeli parantez içindeki değerler, kritik değerler olup, Maki (2012) Tablo 1'den alınmıştır. *; %5 anlamlılık düzeyinde, **; %10 anlamlılık düzeyinde eşbütünleşme ilişkisinin varlığını ifade etmektedir.…”