The Effect of FDI on Developing Hosts’ Economic Growth Quality
|Keywords||Economic Growth Quality FDI Economic Growth Efficiency Economic Growth Stability Economic Growth Sustainability|
As a new capital phenomenon, Foreign Direct Investment (FDI) has been experiencing rapid development since Word War II, brings cross countries motion of production factors which promote developing host counties’economic growth greatly. In this sense, FDI is always treated as an index of economic growth. However, the effect of FDI on host economic growth quality is not always consistent with that on host economic growth quantity. Recently, some host countries’over dependence on FDI highlights the negative effect of FDI on developing host economic quality. This dissertation analyzes the effect of FDI on host economic growth quality theoretically and empirically.The dissertation is constructed as follow. In the introduction, we introduce the background, motivation, structure, contributions and shortcomings of the research. Chapter 1 briefly reviews the related literature concerning economic growth quality and FDI. Chapter 2 analyzes the mechanism of FDI effect host economic growth quality. Chapter 3 constructs the complex indicator of economic growth quality. Chapter 4 tests the effect of FDI on developing host economic quality empirically with cross country data. Chapter 5 empirically tests the effect of FDI on China economic growth quality with provincial data. Chapter 6 briefly summarizes the dissertation and offers some policy implications.The dissertation gets main conclusions as follow. Firstly, most of sample developing countries’economic growth quality is undermined by FDI, only few of them were promoted by inflow FDI. Secondly, government behavior has great effect on FDI. Thirdly, FDI has a positive effect on Asian-Pacific economic growth efficiency, FDI has a negative effect on Latin America economic growth stability, FDI has a negative effect on developing economic growth sustainability in all three districts. Fourthly, FDI has undermined China economic growth quality, but Chinese government behavior make the situation of eastern and western better.