The Role of International Trade and Foreign Direct Investment in Economic Growth: The Case of China for the Period of 2001-2018

Tarek Alkhatib


Purpose: This study investigates the relationship between Foreign Direct Investment, International Trade, and the Economic Growth of China over the period 2001-2018.

Design/method/approach: The methodology used for the current research is the quantitative approach. In this approach, the researcher will use the secondary data. All data is collected from the United Nations Conference on Trade and Development (UNCTAD), Economic Report, Department of Statistics and Ministry of Finance, China, World Bank.

Findings: This study’s findings showed that foreign direct investment has a significant and positive influence on China’s economic growth. The regression equation, which is (β = 0.158, t = 2.835, p = 0.005 indicated that the model is fit. As the model has shown, international trade has a significant and positive influence on China’s economic growth; it recorded a good regression equation (β= 0.550, t = 10.284, p = 0.000).

FULL TEXT PDF 1-8] DOI: 10.30566/ijo-bs/2021.02.45

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