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Foreign direct investment

Developing China: The Remarkable Impact of Foreign Direct Investment

The Hinrich Foundation commissioned Professor Michael J. Enright to lead a major research project identifying the impact of foreign direct investment on China’s economic development.

One of the most important features of China’s economic emergence has been the role of foreign investment and foreign companies. The importance goes well beyond the USD 1.6 trillion in foreign direct investment that China has received since it started opening its economy.

Using the tools of economic impact analysis, the author estimates that around one-third of China’s GDP in recent years has been generated by the investments, operations, and supply chains of foreign invested companies.

Hinrich Foundation Michal Enright Book Event Indonesia
Professor Michael Enright, author of "Developing China: The Remarkable Impact of Foreign Direct Investment" discusses his book findings in Indonesia.

In addition, foreign companies have developed industries, created suppliers and distributors, introduced modern technologies, improved business practices, modernized management training, improved sustainability performance, and helped shape China’s legal and regulatory systems.

The power of FDI

These impacts have helped China become the world’s second largest economy, its leading exporter, and one of its leading destinations for inward investment.

The book provides a powerful analysis of China’s policies toward foreign investment that can inform policy makers around the world, while giving foreign companies tools to demonstrate their contributions to host countries and showing the tremendous power of foreign investment to help transform economies.



Author

Michael Enright

Michael Enright is a leading expert on competitiveness, regional economic development, and international business strategy. He joined the University of Hong Kong as Professor of Business Administration in 1996 after six years as a professor at the Harvard Business School.

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