eprintid: 11166
rev_number: 2
eprint_status: archive
userid: 1
dir: disk0/00/01/11/66
datestamp: 2023-11-10 03:25:42
lastmod: 2023-11-10 03:25:42
status_changed: 2023-11-10 01:14:36
type: article
metadata_visibility: show
creators_name: Ahmad, F.
creators_name: Draz, M.U.
creators_name: Yang, S.-C.
title: China's economic development: does exchange rate and FDI nexus matter?
ispublished: pub
note: cited By 9
abstract: This study aims to investigate the relationship between China's exchange rate, foreign direct investment (FDI) inflows, and economic development. We applied the bound testing approach on aggregate level data from 1981 to 2013. The results showed that the Chinese economy benefitted from a lower exchange rate over this period, and that there was a direct link between FDI inflows and economic development on an aggregate level both in the long and short run. The results of the Granger causality test identified a long- and short-run association among these variables. The GMM estimations with dummies for financial crises and RMB exchange rate policy fluctuations also confirmed the growth enhancing impact of the exchange rate and FDI inflows. To promote sustainable economic development in the future, China should focus on improving the levels of domestic investment and human capital, as well as supervising the level of openness and capital controls. © 2019 Crawford School of Public Policy, The Australian National University and John Wiley & Sons Australia, Ltd
date: 2019
publisher: Blackwell Publishing Ltd
official_url: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85074593089&doi=10.1111%2fapel.12268&partnerID=40&md5=8527c7555fbe88616acf939b6b8c9246
id_number: 10.1111/apel.12268
full_text_status: none
publication: Asian-Pacific Economic Literature
volume: 33
number: 2
pagerange: 81-93
refereed: TRUE
issn: 08189935
citation:   Ahmad, F. and Draz, M.U. and Yang, S.-C.  (2019) China's economic development: does exchange rate and FDI nexus matter?  Asian-Pacific Economic Literature, 33 (2).  pp. 81-93.  ISSN 08189935