Open Door Policy and China's Rapid Growth: Evidence from City-level Data
There is clear evidence that during 1980-90 more exports are positively associated with higher growth rates across Chinese cities. In comparison, in the late 1980s, the contribution to growth comes mainly from foreign investment. The contribution of foreign investment comes in the form of technological and managerial spillover across firms as opposed to an infusion of new capital. Finally, there is nothing magical about the high growth rates of Chinese coastal areas other than their effective utilization of foreign investment and exports.
Growth Theories in Light of the East Asian Experience, Takatoshi Ito and Anne O. Krueger, eds., (Chicago: University of Chicago Press: 1995), pp 73-98.
The Open Door Policy and China's Rapid Growth: Evidence from City-Level Data, Shang-Jin Wei. in Growth Theories in Light of the East Asian Experience, Ito and Krueger. 1995