Economic Impacts of China^<, >s Coastal Development to other Regions

Purpose of the present project is to assess the impact of liberalization and development policies in China^<, >s coastal region to other regions. In 1994, we visited jiangsu Province which is one of the most rapidly growing regions in China. Liberalization policies and development policy in Shanghai in the 1990s had given great impetus on growth of Jiangsu province. Especially, southern cities of Jiangsu province experienced rapid influx of foreigh direct investment. (FDI) Two cities that we visited (August 28-Sept.4,1994) Suzhou and Wuxi were typical of such cities. FDI to Jiangsu Province only accounted for 1% of total FDI to China in 1986. But in 1992 year, shares of Suzhou and Wuxi in total FDI to Jiangsu Province were 49.9% and 16.6% respectively. We visited three different types of joint venture firms. China-Japan, China-Hong Kong and Japan and China-Hong kong. From our interview managers in each firms and also with officials at Development and Planning Bureau of Jiangsu Province, we were impressed by the importance of technology transfers, management skills and trade promotion of FDI inflow. However, the impact of technology transfers, management skills and trabe promotion to Jiangsu Provinces as well as to other regions will differ by industry, technology used and local procurement of parts. In the future study, we will like to study the impacts of FDI by industry in order to assess the relationship between FDI and growth more precisely.