Foreign Direct Investment and the Chinese Economy
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Foreign Direct Investment and the Chinese Economy

A Critical Assessment

9781785369728 Edward Elgar Publishing
Chunlai Chen, Associate Professor, Policy and Governance Program, Crawford School of Public Policy, ANU College of Asia and the Pacific, The Australian National University, Australia
Publication Date: October 2017 ISBN: 978 1 78536 972 8 Extent: 224 pp
Foreign Direct Investment and the Chinese Economy provides a comprehensive overview of the impact of foreign direct investment, with extensive empirical evidence, on the Chinese economy over the last three and a half decades.

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Contents
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Foreign Direct Investment and the Chinese Economy provides a comprehensive overview of the impact of foreign direct investment, with extensive empirical evidence, on the Chinese economy over the last three and a half decades.

Chunlai Chen presents a compelling and thorough analysis of the leading theoretical explanations of the impact of FDI through a series of rigorous and in-depth empirical investigations on China’s regional economic growth, urban–rural income inequality and urbanization development. These case studies show that despite FDI’s contribution to economic growth, reduction of income inequality and the rise in urbanization, there is further evidence of uneven regional distribution of FDI inflow. This has negatively affected economic growth, exacerbated income inequality and impeded urbanization of inland China. The book concludes by demonstrating that these findings have important policy implications, not only for China, but also for other developing countries influenced by the implementation of FDI policies.

This work of highly focused theoretical analysis is an invaluable resource for scholars and students of economics as well as policy-makers who are interested in the Chinese economy.
Critical Acclaim
‘Foreign direct investment (FDI) in China has been an important component of the country’s development, particularly since the early 1990s, and many have written about FDI’s impact on China’s rapid growth. Very little work, however, has looked at the impact of FDI on different regions of China, on accelerating the pace of urbanization there, or on FDI’s impact on the sharp divide between the registered rural and urban populations. Chunlai Chen, one of the leading analysts of the impact of foreign investment, explores these important issues in depth in this major study.’
– Dwight H. Perkins, Harvard University, US

‘China’s miracle has been driven by a small set of engines, none of which has been more influential than foreign direct investment, or FDI. In this book, Professor Chen provides the reader with an accessible picture of the role of FDI in China’s economic development. He not only shows how FDI contributed technologies and much-needed capital; his book documents the impacts on the economy and society. This is a must-read book for any student of China or those wanting to understand the current and future role that China will play in the world.’
– Scott Rozelle, Stanford University, US
Contents
Contents: 1. Introduction PART I IMPACTS ON REGIONAL ECONOMIC GROWTH 2. Regional characteristics and the impacts of foreign direct investment on China’s regional economic growth 3. The interregional impacts of foreign direct investment on China’s inland economic growth PART II IMPACTS ON INCOME INEQUALITY 4. The impacts of foreign direct investment on urban-rural income inequality in China 5. The interregional impacts of foreign direct investment on China’s inland urban-rural income inequality PART III IMPACTS ON URBANIZATION DEVELOPMENT 6. The impacts of foreign direct investment on urbanization development in China 7. Conclusion and policy implications Index




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