The Effect of Chinese Foreign Direct Investment on Economic Growth in the Asian Region

This paper examines the effect of Foreign Direct Investment (FDI) on economic growth. Following a theoretical model of endogenous growth to analyze this relationship, I use a log linear regression with country and time fixed effects. I focus specifically on Chinese FDI in 6 Asian countries: Hong Kong, South Korea, Indonesia, Thailand, Malaysia, and the Philippines. I reach the conclusion that FDI does not have a significant impact in this particular case. I further conclude that the growth rate of the population and the level of human capital have a significant effect on economic growth