Foreign Direct Investment in China Some Lessons for Other Countries

China's increasing openness to foreign direct investment (FDI) has contributed importantly to its exceptional growth performance. This paper examines China's experience with FDI and identifies some lessons for other countries. Most of the factors explaining China's success have also b...

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Main Author: Zebregs, Harm
Other Authors: Tseng, Wanda
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2002, 2002
Series:IMF Policy Discussion Papers; Policy Discussion Paper
Subjects:
Fdi
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Summary:China's increasing openness to foreign direct investment (FDI) has contributed importantly to its exceptional growth performance. This paper examines China's experience with FDI and identifies some lessons for other countries. Most of the factors explaining China's success have also been important in attracting FDI to other countries: market size, labor costs, quality of infrastructure, and government policies. FDI has contributed to higher investment and productivity growth, and has created jobs and a dynamic export sector. China's success, however, did not come without some pitfalls: an increasingly complex tax incentive system and growing regional income disparities. Accession to the WTO should broaden China's "opening up" policies and continue FDI's contributions to China's economy in the future
Physical Description:26 p.
ISBN:9781451974171
1451974175