FDI Flows to Asia: Did the Dragon Crowd Out the Tigers?

 
Author/Editor: Mercereau, Benoît
 
Publication Date: September 01, 2005
 
Electronic Access: Free Full text (PDF file size is 437KB).
Use the free Adobe Acrobat Reader to view this PDF file

 
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: China's dramatic success in attracting foreign direct investment (FDI) has raised concerns that it has success diverted FDI from other countries in Asia. We develop a new methodology to estimate crowding out, and we use it to investigate the impact of China's emergence on FDI flows to Asia using data from 14 Asian economies from 1984 to 2002. The results suggest that China did not have much impact on FDI to other countries. In particular, lowincome economies, which compete with China for low-wage investment, and countries with low levels of education or scientific development do not seem to have been especially affected.
 
Series: Working Paper No. 05/189
Subject(s): Foreign investment | China | China, People's Republic of

Author's Keyword(s): FDI | China | Diversion | Crowding-out
 
English
Publication Date: September 01, 2005
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2005189 Pages: 30
Price:
US$15.00 (Academic Rate:
US$15.00 )
 
 
Please address any questions about this title to publications@imf.org