The effect of inward foreign direct investment on export growth in emerging economies, china case of study

Abstract EN

This study presents evidence suggesting that attracting foreign direct investment (FDI) offers potential for raising the growth of exports in developing countries.

The sample covers 36 years countries from 1982 to 2018 of Chinese economy as study case.

The empirical findings revealed that the unit root is stationary after the first difference and presents a co-integration.

After the confirmation of co-integration, there exists a long-run relationship between exports growth.

Finely, the study recommends that policy makers shall take appropriate steps to increase the inflow of foreign direct investment in order to achieve the long run export growth, through creating a conductive environment and adopt more liberal policy frameworks to attract new FDI and maximize net benefits.

This may include creating a good macroeconomic environment, accelerating administrative reform, sustaining social and political stability and reducing government bureaucracy.