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2006•Journal of International TradeRequires access

The Effect of FDI on the Economic Development in China

Wang Bi

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Abstract

This article argues that in evaluating the impact of FDI on the econmic development in china, a key question is whether FDI crowds out domestic investment or not. After analysis of crowding in and crowding out effect, base on the relative economic data during 1993-2004, we research positively the effect of FDI on economic development in china. The result indicates that FDI didn't crowd out domestic investment in the lately ten years.

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What this paper is about

This article argues that in evaluating the impact of FDI on the econmic development in china, a key question is whether FDI crowds out domestic investment or not. After analysis of crowding in and crowding out effect, base on the relative economic data during 1993-2004, we research positively the effect of FDI on economic development in china. The result indicates that FDI didn't crowd out domestic investment in the lately ten years.

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Available abstract

This article argues that in evaluating the impact of FDI on the econmic development in china, a key question is whether FDI crowds out domestic investment or not. After analysis of crowding in and crowding out effect, base on the relative economic data during 1993-2004, we research positively the effect of FDI on economic development in china. The result indicates that FDI didn't crowd out domestic investment in the lately ten years.

Key concepts: Foreign direct investment, Crowds, China, Crowding out, Economics, Investment (military), International economics, Economic geography

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