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Causality between FDI and economic growth in China

Zhao, Changwen; Du, Jiang - In: The Chinese economy 40 (2007) 6, pp. 68-82

vector autoregression (VAR) approach developed by Toda and Phillips, we examine the causality between FDI and growth in China … error-correction analyses. The result reveals that the two-way causality between FDI and growth in China is not highly … significant. China's economic growth indeed attracts FDI influx, which supports the market-size hypothesis; while the FDI influx …

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