AbstractsEconomics

HOW DOES FOREIGN DIRECT INVESTMENT (FDI) AFFECT CHINA'S EXPORTS TO OECD COUNTRIES

by Shanwen Li




Institution: Dalhousie University
Department: Department of Economics
Degree: MA
Year: 2014
Keywords: FDI; China's exports; OECD countries; gravity model; fixed effects
Record ID: 2026041
Full text PDF: http://hdl.handle.net/10222/55956


Abstract

This paper empirically investigates the impact of inward FDI on Chinas export performance to OECD countries, employing a panel dataset that incorporates 34 OECD members with the time-span from 1997 to 2012. The estimation is conducted by utilizing an augmented gravity model with country and year fixed effects. LSDV (Least Square Dummy Variable) regression results on FDI indicate a positive and significant effect of FDI inflows on Chinas exports to OECD members. This result suggests that inward FDI plays an important role in Chinas exports to its top trading partners, and enables China to take the leadership of the exporting rank in the world.