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The Industrial Impacts of Foreign Direct Investment Liberalization: Evidence from China

Ting Ji et al.

Singapore Economic Review2026https://doi.org/10.1142/s0217590826500116article
ABDC B
Weight
0.50

What the paper says

In this paper, we examine the industrial impacts of China’s 2002 FDI Liberalization policy, which relaxed foreign direct investment restrictions across a substantial portion of industries. We focus on the effects of this policy on industrial productivity dispersion, a key indicator of resource misallocation. Utilizing firm-level data covering most manufacturing sectors in China from 1998 to 2007, we employ a difference-in-differences estimation strategy. Our results show that FDI deregulation significantly reduces productivity dispersion, indicating improved resource allocation within industries. Notably, the exit of zombie firms and greater TFP improvement of surviving low-productivity firms jointly drive this positive outcome. Furthermore, heterogeneous analyses reveal that industries with comparative disadvantage are more sensitive to the effects of FDI liberalization.

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https://doi.org/https://doi.org/10.1142/s0217590826500116

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@article{ting2026,
  title        = {{The Industrial Impacts of Foreign Direct Investment Liberalization: Evidence from China}},
  author       = {Ting Ji et al.},
  journal      = {Singapore Economic Review},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1142/s0217590826500116},
}

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The Industrial Impacts of Foreign Direct Investment Liberalization: Evidence from China

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.