Foreign direct investment and skill formation in China

Bharati Basu; Jianfeng Yao

doi:10.1080/10168730902901106

Foreign direct investment and skill formation in China

Bharati Basu, Jianfeng Yao

Economics

Research output: Contribution to journal › Article › peer-review

14 Scopus citations

Abstract

Using panel data analyses, this paper examines the relation between human capital formation and Foreign Direct Investment (FDI) in China. It shows that FDI has a significant effect on human capital formation, at least for the period 1995-2001. When we estimate the relationship between FDI and skill formation for the coastal and non-coastal provinces separately, the positive relationship is maintained, and this relationship also holds when we consider investment in real estate or the ratio of number of foreign firms to total number of firms investing in China. The results stand robust in the causality test and the sensitivity analysis.

Original language	English
Pages (from-to)	163-179
Number of pages	17
Journal	International Economic Journal
Volume	23
Issue number	2
DOIs	https://doi.org/10.1080/10168730902901106
State	Published - 2009

Keywords

China
FDI and skill formation

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10.1080/10168730902901106

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title = "Foreign direct investment and skill formation in China",

abstract = "Using panel data analyses, this paper examines the relation between human capital formation and Foreign Direct Investment (FDI) in China. It shows that FDI has a significant effect on human capital formation, at least for the period 1995-2001. When we estimate the relationship between FDI and skill formation for the coastal and non-coastal provinces separately, the positive relationship is maintained, and this relationship also holds when we consider investment in real estate or the ratio of number of foreign firms to total number of firms investing in China. The results stand robust in the causality test and the sensitivity analysis.",

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AB - Using panel data analyses, this paper examines the relation between human capital formation and Foreign Direct Investment (FDI) in China. It shows that FDI has a significant effect on human capital formation, at least for the period 1995-2001. When we estimate the relationship between FDI and skill formation for the coastal and non-coastal provinces separately, the positive relationship is maintained, and this relationship also holds when we consider investment in real estate or the ratio of number of foreign firms to total number of firms investing in China. The results stand robust in the causality test and the sensitivity analysis.

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Foreign direct investment and skill formation in China

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Keywords

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