Publication
2006
This paper studies the inflow of foreign direct investment (FDI) into China, what factors have driven its uneven distribution across provinces and the effects of FDI on the domestic economy. The author develops a general equilibrium model and determines that where FDI flows, infrastructure is built and consequently more FDI is attracted. As a result, wages and consumer spending rise, and the domestic economy expands.
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English (PDF, 24 pages, 201 KB) |
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Author | Wenhui Fan |
Series | East-West Center Working Papers |
Publisher | East-West Center (EWC) |
Copyright | © 2006 East-West Center (EWC) |