The Impact of China's Economic Development on the Global Economy – A Review of Past Economic Literature
18 Pages Posted: 1 Feb 2010
Date Written: January 8, 2009
Based on the theoretical and empirical research of economists in the past decade, this article intends to address the following issues about the effects of China’s economy on the global economy: What impact does China’s fast-growing economy have on the global trade flow and trade pattern? Does China’s sustained export growth pose a significant competitive threat to some countries and regions (particularly the developing countries in East Asia, Latin America and Africa). In the midst of fast economic growth driven by its reform and opening, China has become the largest FDI recipient among all developing countries and regions. Does the FDI received by China have “transfer effects” on other countries (especially in terms of FDI inflows into neighboring countries)?
Keywords: FDI, Transfer effects, Competitive effects, Complementary effects, Rise of China
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