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The paradox of unequal regional investment and equal regional economic growth in China

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Abstract

China's policy on Special Economic Zones has attracted increasing flows of direct foreign investment to China. The investment has been very unequally distributed among China's 30 regions.

 The article focuses on the regional economic growth as a result of the direct foreign investment in the region and its spillover effects on neighboring regions. The unequal distribution of direct foreign investment should in principle tend to enlarge the regional economic differences. The article, however, shows that this is not the result of the investment.

 The empirical findings highlight the impact of direct foreign investment on the Chinese regional economies in transition.

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Received: November 2000/Accepted: August 2001

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Zhang, J., Kristensen, G. The paradox of unequal regional investment and equal regional economic growth in China. Ann Reg Sci 35, 637–655 (2001). https://doi.org/10.1007/s001680100064

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  • JEL classification: 010
  • 011
  • R10
  • R11
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  • R15