FDI Flows between China and ASEAN： Emerging Factors and Prospect

I. Introduction Foreign direct investment (FDI) from ASEAN into China is now approximately fifty times as much as it was in 1990 (Table 1). China’s national statistics show that ASEAN FDI in China is comparable to that from the top five FDI outflow countries: the USA, Japan, the UK, France and Germany. The cumulative amount of China’s actually utilized FDI from ASEAN during 1994–2004 reached US$33.73 bn, which exceeded the cumulative amount of China’s actually utilized FD…     

China＇s Import-exchange Rate Linkage： Evidence from the China-bound Exports of Japan and Korea

This paper examines how the China-bound exports of Japan and Korea are related to exchange rates, motivated by the fact that processing trade makes up a large proportion of China＇s trade, and that Japan and Korea are the leading source countries for processing imports. Because processing imports are inputs for exports, the link between such imports and China＇s exchange rates are ambiguous. We estimate export functions that include China＇s RMB real effective exchauge rates （REER） along with bilateral real exchange rates （B RER） using Johausen ＇s cointegration method aud find that the RMB REER significantly affects Japanese and Korean exports to China, even more so than BRER in most cases examined. These two exchange rates appear in the export equations with opposite signs. Subsequently, we use the estimated model to illustrate the importance of accounting for a concurrent change in B RER when analyzing the effects of a hypothetical RMB revaluation on China＇s trade balances despite the apparently weak imports-B RER linkage.     

More effective utilization of FDI by China

Emerged from 1950＇s, with the huge emergences of multinational enterprises, foreign direct investment is developing along with international trade, and both of them present two main motivations of the world economy. Used to be one of the most closed countries, China has now been an indispensable part of the international economy since its economic reform in 1978. Normally big countries receive large amount of foreign direct investment, and as a huge country, China receives the top amount of FDI recently. For China, how to attract more FDI is less important than how to utilize FDI efficiently. If China uses FDI more efficiently, FDI could contribute more to its economic reform and developments. However, the efficient use of FDI is not an easy task for China with such large volume. This paper discusses the current situation of international capital flow and FDI to China, and then analyzes the issues concerning FDI in China from several different perspectives like terms of trade,, technology spillover, dual economy, domestic investment, MNEs in China, and spatial distribution of FDI in China, etc.. Finally, the paper gives conclusion of the situation of FDI in China and suggestion for the policies of efficient usage of FDI in China.     

Exporting National Champions： China＇s Outward Foreign Direct Investment Finance in Comparative Perspective

We examine the extent to which Chinese development banks have financed the globalization of China＇s ＂national champion ＂firms： specifically, through outward foreign direct investment （OFDI）. We create a database of Chinese fnance for OFDI and compare our results to the existing literature and available data on Japan, Korea and other Asian nations. We estimate the total value of China＇s OFDI finance from 2002 to 2012 at US$14Obn. As a percentage of total OFDI, China＇s lending is roughly three times higher than Japan ＇s, the previous global leader in OFDl finance. We identify two major reasons for China＇s high （31 percent） ratio of OFDl lending to total OFDI. First, China has a greater incentive to give OFDI loans than Japan or Korea ever did because its borrowers are statelowned so it can more easily channel funds to targeted areas. Second, China has a greater capacity to give OFDI loans because it has significantly higher savings and foreign exchange reserves than Japan and Korea.     

Comparative Analysis of Capital Productivity in China＇s High-Tech Industries

While labor productivity is a topic of constant debate and has been studied extensively, far less attention has been devoted to the question of capital productivity. Productive use of physical capital is an important source of economic growth and investment return. This paper presents a comparative study of capital productivity in China‘s high-tech industry. Using a version of the perpetual inventory method (PIM), new estimates have been made of the physical capital stock by sector. Capital productivity in China‘s high-tech industry is higher than in total manufacturing, but the gap between them has been shrinking. Comparison with high-tech industries in the US., highlights that China‘s high-tech industries could play a more important role in the growth of manufacturing and the whole economy.     

The Analysis on the Development of China＇s Foreign Direct Investment

Foreign Direct Investment （FDI） is one of the most important ways that China makes use of the foreign capital, an important path that Chinese enterprises participate in the international competition deeply and also an important means that our enterprises promote their competitive ability. Absolutely, our current foreign direct investment is still in the primary stage, short in quantity, and small in scale. This kind of situation is quite inappropriate to China＇s international positions and management level. The main problems existing in our foreign direct investment are analyzed in this paper, the relevant counter measures are also put forward.     

Analysis of South Korea’s Direct Investment in China

I.General Situation of South Korea’sDirect Investment in ChinaSouth Korea’s investment in China has increased dramatically since1992,when the twocountries formallyestablished diplomatic relations.According to China’s statistics,in1992,South Korea’s direct investment in China was only US$119million.By2002,it reachedUS$2.721billion–a26.78percent annual growth on average.This was much higher thantheaverageannual growth ofinvestmentby other countries in China,which stood at10.87 pe…     

Do China＇s Outward Direct Investors Prefer Countries with High Political Risk？ An International and Empirical Comparison

This paper focuses on a conventional debate regarding whether Chinese outward direct investors tend to invest in countries with high political risk. Using 2003 -2011 data from the World Bank, the Heritage Foundation and the KOF Swiss Economic Institute, we investigate China ＇s political risk distribution and political risk index （PRI）. Our results indicate that China ＂s political risk index was ranked 48th among 153 economies in 2011, in the lower risk level of the PRI spectrum. In an international comparison of political risk distribution, the proportion of Chinese outward direct investment （ODI） among countries with high political risk is less than the world average. The Chinese ODI political risk index has significantly improved and remains lower than the world average. To improve Chinese ODI PRI, the Chinese Government should continue to implement differentiation strategies and to offer official development assistance to improve the investment environment in developing countries and reduce political risk.     

China＇s Sustained Economic Growth： Do Direct R＆D Spillovers Matter？

Using data from 1986-2005, the present paper estimates the impact of direct knowledge spilled over from G-7 countries on China＇s economy. We use telephone line penetration rates andpersonnel flows to estimate the direct spillover effect. Our results show that direct knowledge spillovers through telecommunication networks and personnelflows are important components of international R＆D spillovers in China. These direct channels of spillover effectively accelerate China＇s economic growth. Therefore, China should invest more in human capital and in its telecommunication network to enhance the absorptive capacity of direct R＆D spillovers, and to increase communication with other nations, in particular the USA and Japan. More subsidies to domestic R＆D research and purchase of intermediate goods will help to raise China＇s R＆D intensity.     

Decomposing the Effects of FDI on Guangdong＇s Economic Growth

Guangdong has been experiencing rapid economic growth, while this rapid growth was accompanied by a boom in inward foreign investment and the establishment of a direct link with the outside world. Using city-level panel data from 1996 to 2002, the four-year moving fixed effects FDI-led growth model empirically shows that Hong Kong, Macao and Taiwan （HMT） investment will not continue to make up the bulk of FDI in Guangdong for long, and that its dominant influence on Guangdong＇s economic growth will be gradually replaced by other sources of investment in the near future due to various political and economical reasons.     

Factors Influencing FDI Location Choice in China＇s Inland Areas

Since 1978, the bulk of foreign direct investment （FDI） has gone to the south-eastern coastal areas in China, with only a small portion received inland. With the launch of the Western Development Strategy in 2000 and the Central China Rising Strategy in 2004, the choice of investment locations has expanded to inland areas. Based on panel data covering 98 inland cities from 1999 to 2005, this study identifies location preference variables for FDI invested in China＇s inland areas, and finds that well-established factors such as natural resources and low labor costs are not important factors in determining FDI locations within China＇s inland. Instead, policy incentives and industrial agglomeration are the most important factors. The findings of the present study have policy implications for both host country authorities and multinational corporations.     

The Rise of China's Global Middle Class in an International Context

We estimate the size of the global middle class in China and 33 other countries and analyze China’s expanding middle class in an international context.The“ghbal middle class”is defined in terms of being neither poor nor rich in the developed world.China’s global middle class has grown rapidly and has been catching up with the middle class in developed countries.By 2018 China’s global middle class constituted 25 percent of China s population;in absolute size it was nearly double the size of the global middle class in the US and was similar in size to that of Europe.Cross-country analysis of the relationship between the middle-class share of the total population and GDP per capita reveals an inverted-U pattern.China is not an outlier from the cross-country pattern but the speed with which its middle-class has expanded is unusual.The only other countries with similarly large,rapid expansions of the middle class are transition economies.     

China＇s Trade Acceleration and the Deepening of an East Asian Regional Production Network

China＇s recent surge in trade has been associated with its deepening but contrasting trade relations with its two groups of key trading partners. On the one hand, China＇ s trade surpluses with the USA and the EU have risen rapidly, reaching US$144bn and US$91bn in 2006, respectively. On the other hand, China is importing heavily from its Asian neighbors. This diverging pattern of trade relations between China and its main trading partners reflects the continuous expansion and intensification of a complex cross-border production network in Asia, particularly for consumer electronics. In the process of deepening manufacturing sharing, China serves as an essential export platform for firms headquartered in the more advanced economies. These firms export intermediate goods from the relatively more advanced Asian economies to their affiliates in China where these inputs are assembled and then shipped to key export markets, including primarily the USA and the EU. One apparent outcome of the growing processing and assembly trade is the increased interdependency among Asian economies, which are now more dependent on each other than ever. It has also led to substantial structural changes and technological upgrading in China＇ s traded goods.     

韩国对华直接投资分析

This article examines, from a dynamic perspective, the general situation of the development of the South Korean direct investment in China since 1992 when the two countries established diplomatic relations. It probes into many characteristics of the South Korean direct invest mentin China: its late start yet rapid rise, the smaller average value of Korean project investments,the accelerated process of localization by large South Korean enterprises in China, the diversified industrial distribution, and the wide-ranging geographical layout. It analyses reasons for the rapid increase in South Korean investment in China: the use of China‘s lowpriced production factors, the South Korean enterprises direct entry into the Chinese market, and the stable investment environment with fewer labour disputes that China provides. This article finally also proves that South Korean enterprises have achieved satisfactory results from their direct investment in China.     

Does Foreign Direct Investment Affect the Growth of Local Firms？ The Case of China＇s Electrical and Electronics Industry

Does foreign direct investment(FDI) into developing countries affect the growth of local firms in host countries? Using a dataset of 38 sectors in China’s electrical and electronics industry,in this paper,we analyze whether FDI has a positive effect on local firms,with technology spillovers,added value and increasing total factor productivity,or a negative, market stealing,effect.Estimating the relationship between growth of local firms and investment of foreign firms,our results show that FDI is likely to have a negative impact on the growth of local firms in sectors with large disparities in technology and less experience in business.Therefore,local firms lacking in technology need to find markets with no competition from foreign firms or determine strategies to compensate technology disparities.     

An Analysis of Southeast Asian Firms＇ Investment in China

Economic cooperation between China and Southeast Asian economies is increasingly attracting the attention of policy-makers, scholars, and practitioners. Firms from Southeast Asia have been playing an important role in China‘s utilization of foreign direct investment, though most of these firms have been viewed as small, labor-intensive, and ordinary in technology. This paper reveals one important dimension of economic cooperation between China and Southeast Asia. It investigates the factors that influence Southeast Asian firms‘ investments in Guangdong, which is one of the largest provinces in China in terms of utilization of foreign direct investment, and it tries to answer the question of what make Southeast Asian firms invest in China in a large scale and in the way of advancing waves.T he research outcomes contribute to the knowledge of the changing economic relations between China and Southeast Asia.     

Does China have Inflationary Effects on the USA and Japan？

With China＇s share in global trade increasing rapidly, some argued in 2002-2003 that China was exporting deflation to other countries as it was dumping cheap goods in mature markets. Later, others argued that China was causing sharp increases in global prices. This paper uses several econometric techniques to assess the extent of the link between inflation rates between China and the USA and Japan. Only limited empirical evidence at the aggregate level is found for consumer price inflation in China leading to price changes in the USA and Japan. However, there is some evidence that inflation in the USA has an impact on Chinese inflation. The results seem consistent with the Federal Reserve and the Bank of Japan being concerned about inflation and, hence, adjusting policy such that inflation shocks have no significant effect on overall inflation. Recent Chinese price rises are unlikely to have a material effect on the USA or Japan.     

Changing Engines of Growth in China： From Exports, FDI and Marketization to Innovation and Exports

This paper investigates the changing sources of growth in post-reform China. Using crossprovince regressions, this paper finds that, in earlier periods, exports, foreign direct investment and marketization were significantly related to per capita income growth, whereas＇ since the late 1990s, foreign direct investment and marketization have lost their significance and have been replaced by new sources of growth, such as innovation and knowledge, with only exports continuing to be important. This finding is robust after controlling for other variables representing other economic policies and provincial characteristics. We also tackle the possible endogeneity of innovation variables using the instrumental variables estimation method.     

中国的对外贸易与投资(英文)

I. IntroductionSince the inception of its economic reform in 1978, China has achieved remarkable economicgrowth, averaging about 9 percent before the Asian Financial Crisis in 1997 and more than9 percent in recent years. Two areas related to China’s economic growth deserve specialrecognition and analysis: international trade and investment. They are the two mostimportant forces related to external factors behind China’s economic reform and havecontributed significantly to China’s economi…     

Global Quota System and China＇s Textile and Clothing Industry

I. Introduction As a developing country, textile and clothing goods remain one of the most important sources of China’s exports since the opening up to the outside world and economic reform at the end of the 1970s. The contribution of textile and clothing exports to China’s total exports hit its record in the middle of the 1980s. In 1987, the share of these two types of goods in China’s total exports was 31.13 percent. From 1986 to 1995, their share in China’s exports was more than 30 pe…