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The Open Door Policy and China's Rapid Growth: Evidence from City-Level Data

In: Growth Theories in Light of the East Asian Experience

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  • Shang-Jin Wei
Abstract
There is clear evidence that during 1980-90 more exports are positively associated with higher growth rates across Chinese cities. In comparison, in the late 1980s, the contribution to growth comes mainly from foreign investment. The contribution of foreign investment comes in the form of technological and managerial spillover across firms as opposed to an infusion of new capital. Finally, there is nothing magical about the high growth rates of Chinese coastal areas other than their effective utilization of foreign investment and exports.
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Suggested Citation

  • Shang-Jin Wei, 1995. "The Open Door Policy and China's Rapid Growth: Evidence from City-Level Data," NBER Chapters, in: Growth Theories in Light of the East Asian Experience, pages 73-104, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:8545
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    References listed on IDEAS

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    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
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    More about this item

    JEL classification:

    • F00 - International Economics - - General - - - General
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform

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