Working Paper: NBER ID: w4602
Authors: Shangjin Wei
Abstract: There is clear evidence that during 1980-90 more exports are positively associated with higher growth rates across Chinese cities. In comparison, in the late 1980s, the contribution to growth comes mainly from foreign investment. The contribution of foreign investment comes in the form of technological and managerial spillover across firms as opposed to an infusion of new capital. Finally, there is nothing magical about the high growth rates of Chinese coastal areas other than their effective utilization of foreign investment and exports.
Keywords: China; Economic Growth; Foreign Investment; Exports
JEL Codes: F1; O4
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| higher exports (F10) | greater economic growth (O49) |
| foreign investment (F21) | technological and managerial spillovers (O39) |
| foreign investment (F21) | greater economic growth (O49) |
| higher export levels (F10) | superior growth rates of coastal areas (R11) |
| foreign investment (F21) | superior growth rates of coastal areas (R11) |