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Essay text:
The empirical results show positive but insignificant impact of foreign investment on economic growth. It is seen that foreign investment has a positive impact on economic growth because it serves as a channel through which new technology is transferred from one country to another.
Key words: China, Economic growth, FDI, OLS
Introduction
China experienced a dramatic industrialization since 1978 when economic reforms and open door policy occurred. Economic reform allowed reducing trade barriers which stimulated foreign direct investment rapidly. China entered WTO in 2001.Hence; more rapid development was expected due to fewer restrictions on foreign investment...
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