The impact of Chinese foreign direct investment on host country economic growth

Andrew G Ross (Lead / Corresponding author), Neil Fleming

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)
119 Downloads (Pure)

Abstract

Employing an institutional – FDI – economic growth lens the purpose of this paper is to identify and explain the impacts of Chinese FDI (CFDI) on host countries’ economic growth. While extensive research has been undertaken regarding determinants of CFDI little is known about the actual outcomes of CFDI in recipient countries. Based on a sample of 22 countries over the period 2003-2018 our results identify that while general flows of FDI exhibited positive impacts on host countries’ economic growth, CFDI had a negative effect on host country economic growth. From the host country perspective given the emphasis that is placed on FDI as an instrument of growth and development our findings raise questions about what host countries are actually gaining from CFDI and the potential implications of whether pursuing the ‘Beijing Consensus’ as opposed to the ‘Washington Consensus’ is really in the long-term interests of countries
Original languageEnglish
Pages (from-to)507-525
Number of pages19
JournalLocal Economy
Volume37
Issue number6
Early online date14 Mar 2023
DOIs
Publication statusE-pub ahead of print - 14 Mar 2023

Keywords

  • Belt and Road Initiative
  • China
  • economic growth
  • FDI
  • Foreign Direct Investment
  • Eurasia
  • geostrategy
  • outcomes
  • geopolitical
  • foreign direct investment
  • host country

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

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