FDI boosts economic growth in China, but beware of lagged effects!
The study looked at how foreign investment affects economic growth in different regions of China from 1988 to 2005. They found that overall, foreign investment has a positive impact on economic growth in the country. However, when foreign investment lags by 2 years, it can actually have a negative effect on growth. Additionally, the impact of foreign investment varies across different regions, with the eastern area experiencing the strongest positive effect on economic growth.