Empirical analysis on impact of FDI on the level of urbanization in costal areas

Purpose: There is a close relationship between FDI and the level of urbanization. the objective of this research is to analyze the relationship between FDI and the level of urbanization in Jiangsu and Guangdong provinces in costal areas. Design/methodology/approach: The author uses the modern econom...

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Bibliographic Details
Authors: Can-Ming, Cao, Jin-Jun, Duan
Format: article
Publication Date:2015
Country:España
Institution:Universitat Politècnica de Catalunya (UPC)
Repository:UPCommons. Portal del coneixement obert de la UPC
Language:English
OAI Identifier:oai:upcommons.upc.edu:2099/16533
Online Access:https://hdl.handle.net/2099/16533
Access Level:Open access
Keyword:Investments, Foreign--China
Industrialization--China
Urbanization--China
FDI
Urbanization rate
Industrial structure
Costal areas
Urbanització -- Xina
Industrialització -- Xina
Inversions estrangeres -- Xina
Àrees temàtiques de la UPC::Economia i organització d'empreses::Economia regional
Description
Summary:Purpose: There is a close relationship between FDI and the level of urbanization. the objective of this research is to analyze the relationship between FDI and the level of urbanization in Jiangsu and Guangdong provinces in costal areas. Design/methodology/approach: The author uses the modern econometric methods by panel unit root test, cointegration test, random effects models and fixed effects models, and the data of FDI (2000-2012), urbanization rate, industrial structure and regional GDP of Nanjing, Xuzhou, Suzhou, Wuxi and other 13 cities in Jiangsu Province, Guangzhou, Shenzhen and other 19 cities in Guangdong province, researches the relationship between FDI and urbanization rate. Findings: Models show, FDI was closely correlated with urbanization rate in Jiangsu province and Guangdong province, the highly correlated with industrial structure, while it negatively correlated with the growth of GDP, and the degree of correlation is not high in Jiangsu province, but the high negative correlation in Guangdong province. The results shows the industrial structure and the urbanization rate mainly cause FDI growth. Research limitations/implications: There are many provinces in costal areas of China, this paper just research the relationship between FDI and the level of urbanization in Jiangsu province and Guangdong province, there are some limitations in the study areas and results.