Foreign Direct Investment and China’s Productivity Growth during the 1997 Asian Financial Crisis
Journal Title: Academic Journal of Economic Studies - Year 2017, Vol 3, Issue 3
Abstract
The study estimates the fixed effect model using cross–section weights to estimate panel EGLS for 7 years in 29 regions of China. Though for the sample period, foreign direct investment influences productivity positively, the effect is very lower compared to other factors in the model. Conversely, labor has a very high influence on productivity for the period under consideration. Nevertheless, the years after 1997 have shown more productivity growth compared to the years before 1997. This is probably due to the fact that the government acted quickly to recover by boosting the external demand. Consequently, the contribution of export on productivity growth is significantly large. As long as China’s productivity keeps growing, high technological foreign direct investments will continue to flow into the economy. Chinese government should continue to invest in human capital to match with high technology embodied in foreign direct investments for the economy to continue experiencing high productivity growth.
Authors and Affiliations
Fulgence Dominick Waryoba
Keywords
Related Articles
- EP ID EP201933
- DOI -
- Views 92
- Downloads 0
The Price Volatility of Precious Metals in Times of Economic and Geopolitical Crisis
People perceive gold, silver and platinum as jewellery and massive ingots, but their rarity and physicochemical properties recommend them as being suitable for a wide range of uses. The value of gold has led many states...
The Fundamentals of a Business Model Based on Responsible Investments
The harmonization of profitability and social responsibility is possible under the adoption and practice conditions by the companies of some adequate business models. “Responsible profitability” must benefit as well of m...
Implementation of Resettlement Policy Strategies and Community Members’ Felt-Need in the Federal Capital Territory, Abuja, Nigeria
Over decades now, development-induced displacement and resettlement have taken place in the Federal Capital Territory, Abuja, Nigeria. To address the displacement and the resettlement problems, different resettlement pol...
Affective Commitment and Corporate Reputation. The Effects of Attitude toward Advertising and Trust
Affective commitment refers to the psychological attachment of an individual to an organization. It is the desire reflecting the extent to which an individual wants to be involved in an organization. It includes a sense...
Estimate of Equilibrium Real Exchange Rate and Misalignment of Chinese Yuan Vis-a-Vis US Dollar
The paper examines the misalignment in equilibrium real exchange rate of Chinese Yuan against US dollar. The data covered the period of 1980-2014, it used Vector Autoregressive model, the variables are not stationary at...