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Foreign direct investment and the Chinese economy:a critical assessment

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Foreign Direct Investment and the Chinese Economy provides a comprehensive overview of the impact of foreign direct investment (FDI) with extensive empirical evidence on the Chinese economy over the last three and a half decades. Chunlai Chen presents a compelling and thorough analysis of the leading theoretical explanations of the impact of FDI through a series of rigorous and in-depth empirical investigations on China’s regional economic growth, urban–rural income inequality, and urbanization development. These case studies show that despite FDI’s contribution to economic growth, reduction of income inequality, and the rise in urbanization, there is further evidence of uneven regional distribution of FDI inflow. This has negatively affected economic growth, exacerbated income inequality, and impeded urbanization of inland China. The book concludes by demonstrating that these findings have important policy implications, not only for China, but also for other developing countries influenced by the implementation of FDI policies. This work of highly focused theoretical analysis is an invaluable resource for scholars and students of economics as well as policy-makers who are interested in the Chinese economy.


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