FDI, Growth and Exports in China

The ability to attract foreign direct investments has been an essential issue for many governments in developing countries. On a sample of 25 years, this thesis analyse the impact of FDI on China’s GDP and GDP per capita. In particular my thesis will look at how FDI impacted on the development of coastal and inland provinces where these FDIs were located and their effect on the overall economy of China. Different approaches will be used to show the relationship between the FDI and GDP. Analyses of these will be based on the regression model using panel data analysis for 31 Chinese provinces over the period 1985-2010.