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Abstract

The aim of the study is to investigate the impact of foreign direct investment on economic growth in China during the period 1992-2003. The research is based on data indicators of level of GDP and FDI for China during this time period. In research was used simple ordinary least squares method. Through econometric model we defined the relationship foreign investment and economic growth in terms of simple regression. The empirical results show positive but insignificant impact of foreign investment on economic growth. It is seen that foreign investment has a positive impact on economic growth because it serves as a channel through which new technology is transferred from one country to another.
Key words: China, Economic growth, FDI, OLS

Introduction

China experienced a dramatic industrialization since 1978 when economic reforms and open door policy occurred. Economic reform allowed reducing trade barriers which stimulated foreign direct investment rapidly.......

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Approximate Word Count: 2138
Approximate Pages: 9 (250 words per double-spaced page)

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