The Positive Impact of FDI Inflows and Transnational Enterprises on GDP per Capita: Evidence from China

Pei-zhi WANG, Tahir Abdul Hadi

Abstract


This paper presents an assessment of the role played by Foreign Direct Investment (FDI) Inflows and the foreign transnational enterprises located in China on the increment of the Chinese Gross Domestic Product (GDP) per capita. The hypothesis of this paper suggests that there is a positive relationship between GDP per Capita levels over the years and the number of FDI projects inflows to China and the number of foreign industrialized transnational enterprises, thus, we assume these two independent variables to be of significance to GDP per capita levels in China. We have applied an ordinary least square regression analysis test on the selected model and found that the relationship between GDP per capita levels and the number of FDI projects inflows and the number of foreign industrialized transnational enterprises are negative at 0.00038% and 0.056% respectively.

Keywords


Foreign direct investment, Transnational enterprises, OLS regression model


DOI
10.12783/dtssehs/iceme2019/29578

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