earticle

영어

The China government has changed its economic growth policy since mid 2000. Various favorable treatment policies were reduced or repealed to attract foreign direct investment. This paper analyzed the impact of foreign direct investment on export in China reflecting these changes. Furthermore, the eastern and western regions were compared to identify regional differences. As a result the impact of foreign direct investment on export differed between the eastern and western regions. The relationship between foreign direct investment and export was negative in the eastern regions. Since mid 2000 the policy change for foreign direct investment has been applied more strictly to the eastern regions where the economy was opened and grew. On the other hand the relationship between foreign direct investment and export was positive in the western regions. The western regions have had less economic growth than the eastern regions. Thus, it is still implementing favorable treatment policies which were reduced or repealed in the eastern regions to grow its local economy.