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The Effects of Foreign Direct Investment in the Industrial Sector on Regional Inequality

The Case of China

"Hochschulschriften"  · Band 159

289 Seiten ·  38,00 EUR (inklusive MwSt. und Versand)
ISBN 978-3-7316-1315-2 (Juni 2018 )

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After economic reform in 1978, China gradually became the first country among developing countries and the second in the world, after the USA, in term of stock of inward FDI. Sustained GDP growth, high rate of capital return and brisk economic development made China one of the best destinations for foreign capital. This spectacular overall performance, however, hides one dark spot that the benefits of this growth have not been evenly distributed in different regions of the country. This book analyzes the impact of FDI on industrial sector in different regions during 2003-2013, using descriptive and quantitative models. The results of this research show interdependency of FDI in industrial sector and regional inequality in China (e.g. Regional inequality affects FDI location choices and FDI affects regional inequality). The findings of this research show that economic and non-economic indicators such as technology level, human capital, infrastructure, and government policies affect regional inequality and foreign firms' location choices. Despite the improvement of all indicators in some provinces, such as Henan and Hunan, in central and western regions, they could not absorb significant amount of FDI which show the strong impact of agglomeration forces in absorbing FDI into Chinese coastal provinces and discouraging firms to spatially disperse their production stages. Hence, the results of this thesis also confirm that FDI inflows have widened the gap between rich and poor regions during the research period.

the author
PhD Behzad Azarhoushang
Behzad Azarhoushang Behzad Azarhoushang absolviert sein PhD in Political Science an der Uni Kassel sowie an der Hochschule für Wirtschaft und Recht (HWR) Berlin. Momentan arbeitet er als Dozent an der HWR Berlin, wo er International Economics, Macroeconomics, Microeconomics for Strategic Management and General Introduction to German Economy unterrichtet. Während der letzten Jahre war Azarhoushang darüberhinaus als Tutor für die Kurse Advanced Macroeconomics, Wage Policies and Globalization, Global Wage Policies und Economic Policy and the Role of Trade Unions tätig. [weitere Titel]
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