The Relationship between Domestic Investment and Outward Foreign Direct Investment: Evidences from China
(2011)Department of Business Administration
- Abstract
- Since the strategy of “Going Global” to be implemented, the Chinese OFDI has been increased rapidly. For a long time, governments in developed countries as well as some scholars hold the different attitudes that OFDI will crowd out Chinese domestic
5
investment. In this study, we empirically analyze this relationship between OFDI and domestic investment in China based on the data from 1986 to 2010, we use unit root test, Johansen cointegration test and structure the cointegration model in the time series nanalysis. What’s more, we apply Hausman test and use random and fixed effect model in the panel data research. Both results from time series data and panel data analysis show that OFDI has a significant promoting effect on the domestic... (More) - Since the strategy of “Going Global” to be implemented, the Chinese OFDI has been increased rapidly. For a long time, governments in developed countries as well as some scholars hold the different attitudes that OFDI will crowd out Chinese domestic
5
investment. In this study, we empirically analyze this relationship between OFDI and domestic investment in China based on the data from 1986 to 2010, we use unit root test, Johansen cointegration test and structure the cointegration model in the time series nanalysis. What’s more, we apply Hausman test and use random and fixed effect model in the panel data research. Both results from time series data and panel data analysis show that OFDI has a significant promoting effect on the domestic investment. Investing abroad would bring more domestic investment opportunities in China in both short and long terms during the whole period in the case of overall and divided periods. By analyzing results from different regions, we find that the situation is in line with the country level. And the destinations of OFDI make no difference to the effect of OFDI on GDI. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/2061382
- author
- Zhang, Jin and Dai, Jiayuan
- supervisor
- organization
- year
- 2011
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- OFDI, Gross domestic investment, Cointegration test, Hausman test, China, Management of enterprises, Företagsledning, management
- language
- Swedish
- id
- 2061382
- date added to LUP
- 2011-06-01 00:00:00
- date last changed
- 2012-04-02 19:00:33
@misc{2061382, abstract = {{Since the strategy of “Going Global” to be implemented, the Chinese OFDI has been increased rapidly. For a long time, governments in developed countries as well as some scholars hold the different attitudes that OFDI will crowd out Chinese domestic 5 investment. In this study, we empirically analyze this relationship between OFDI and domestic investment in China based on the data from 1986 to 2010, we use unit root test, Johansen cointegration test and structure the cointegration model in the time series nanalysis. What’s more, we apply Hausman test and use random and fixed effect model in the panel data research. Both results from time series data and panel data analysis show that OFDI has a significant promoting effect on the domestic investment. Investing abroad would bring more domestic investment opportunities in China in both short and long terms during the whole period in the case of overall and divided periods. By analyzing results from different regions, we find that the situation is in line with the country level. And the destinations of OFDI make no difference to the effect of OFDI on GDI.}}, author = {{Zhang, Jin and Dai, Jiayuan}}, language = {{swe}}, note = {{Student Paper}}, title = {{The Relationship between Domestic Investment and Outward Foreign Direct Investment: Evidences from China}}, year = {{2011}}, }