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China and Central and Eastern European Countries : Regional Networks, Global Supply Chain or International Competitors?

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dc.contributor.authorFung, K.C.
dc.contributor.authorKorhonen, Iikka
dc.contributor.authorLi, Ke
dc.contributor.authorNg, Francis
dc.date.accessioned2012-03-30T07:34:24Z
dc.date.available2012-03-30T07:34:24Z
dc.date.issued2009
dc.description.abstractChina has become leading recipients of foreign direct investment (FDI). Meanwhile, an increasing share of global FDI is going to many Central and Eastern European countries (CEECs). What is the relationship between inward FDI of China and the CEECs? We conceptualize the relationship according to three alternative paradigms: (1) China and the CEECs each exist in its own regional production network, with no linkage between FDI flows into China and into CEECs; (2) China and the CEECs together comprise a global production network, so that China's FDI is positively related to CEECs' FDI; and (3) FDI into China is a substitute for FDI into the CEECs, with the correlation being negative. In this paper, we study empirical estimates of this issue for 15 CEECs for 1990-2004 using four different econometric approaches: FGLS with Random effects, FGLS with fixed effects, EC2SLS and GMM. The result supports the conclusion that China's inward FDI does not crowd out CEECs' inward FDI. In fact, it shows that in some regressions FDI flows in these two regions are moderately complementary. Our analysis also confirms the importance for FDI flows of determinants such as market size, degree of trade liberalization, labor quality and a healthy global FDI supply.en
dc.identifier.citationJournal of Economic Integration
dc.identifier.issn1225651X
dc.identifier.urihttps://hdl.handle.net/10986/5757
dc.language.isoEN
dc.relation.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.rights.holderWorld Bank
dc.subjectTrade Policy
dc.subjectInternational Trade Organizations F130
dc.subjectCountry and Industry Studies of Trade F140
dc.subjectInternational Investment
dc.subjectLong-term Capital Movements F210
dc.subjectMultinational Firms
dc.subjectInternational Business F230
dc.subjectTransactional Relationships
dc.subjectContracts and Reputation
dc.subjectNetworks L140
dc.subjectInternational Linkages to Development
dc.subjectRole of International Organizations O190
dc.subjectSocialist Institutions and Their Transitions: Financial Economics P340
dc.titleChina and Central and Eastern European Countries : Regional Networks, Global Supply Chain or International Competitors?en
dc.title.alternativeJournal of Economic Integrationen
dc.typeJournal Articleen
dc.typeArticle de journalfr
dc.typeArtículo de revistaes
dspace.entity.typePublication
okr.doctypeJournal Article
okr.externalcontentExternal Content
okr.identifier.externaldocumentum757
okr.journal.nbpages476-504
okr.language.supporteden
okr.peerreviewAcademic Peer Review
okr.region.countryChina
okr.relation.associatedurlhttp://search.ebscohost.com/login.aspx?direct=true&db=eoh&AN=1070240&site=ehost-live
okr.relation.associatedurlhttp://www2.sejong.ac.kr/~cie/
okr.volume24
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