Scandinavian Working Papers in Economics

Working Paper Series,
Stockholm School of Economics, China Economic Research Center

No 2008-2: IS CHINA DIFFERENT? A META ANALYSIS OF THE EFFECT OF FOREIGN DIRECT INVESTMENT ON DOMESTIC FIRMS

Christer Ljungwall () and Patrik Gustavsson Tingvall ()
Additional contact information
Christer Ljungwall: China Economic Research Center, Postal: Stockholm School of Economics, P.O. Box 6501, SE-113 83 Stockholm, Sweden
Patrik Gustavsson Tingvall: China Economic Research Center, Postal: Stockholm School of Economics, P.O. Box 6501, SE-113 83 Stockholm, Sweden

Abstract: Empirical evidence suggests that China has benefited from foreign direct investment (FDI). However, an important question that remains unanswered is whether China has benefited more from FDI than other countries in general and other transition and developing countries in particular. This paper investigates this issue by performing a Meta-analysis on a sample of 67 country-specific studies yielding 125 observations that have gauged the nexus between FDI and measures of income growth. The results show that studies on China report relatively high t-values and thus indicate that China may have benefited more than other countries from FDI.

Keywords: Meta-analysis; Foreign direct investment; Economic growth; China

JEL-codes: F21; F23

13 pages, November 1, 2008

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