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ISSN: 1546-9239 (Print)
ISSN: 1554-3641 (Online)
Research Article Open Access

Empirical Analysis: Business Cycles and Inward FDI in China

Qiyun Fang and Yao Liu

Abstract

It is well-known that the current speeding-up of globalization has been, on one hand, spreading macro economic effects around the world, while, on the other, fueling firms' activities of crossing national borders. Then, are there any links between these two influences? In this paper, we chose China as our subject, to try to clarify it. A set of models for Granger Causality test and VAR Impulse Responses were constructed and some econometric estimations and empirical analysis were made by employing the latest 20-year authorized annual statistic data. And the findings clearly indicated that firms' (foreign) activities (inward FDI) do respond pro-cyclically to business cycle developments in a long term.

American Journal of Applied Sciences
Volume 4 No. 10, 2007, 802-806

DOI: https://doi.org/10.3844/ajassp.2007.802.806

Submitted On: 7 May 2007 Published On: 31 October 2007

How to Cite: Fang, Q. & Liu, Y. (2007). Empirical Analysis: Business Cycles and Inward FDI in China. American Journal of Applied Sciences, 4(10), 802-806. https://doi.org/10.3844/ajassp.2007.802.806

Open AccessCopyright: © 2007 Qiyun Fang and Yao Liu. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

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Keywords

  • Business cycles
  • Inward FDI
  • Granger Causality test