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Foreign trade, foreign direct investment, and urban inequality

The effects of China

Bibliographic Data

ID6439189
AuthorsYu Wang (0009-0005-4222-2626, University of Utah), Y D Wei (0000-0002-8510-388X, University of Utah)
Year2024
Volume47
Issue9
Pages3453-3474
Publication date2024-01-23
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueJournal of Urban Affairs (JOURNAL)
Journal identifiersISSN: 0735-2166 • E-ISSN: 1467-9906
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1080/07352166.2024.2302466
OpenAlexW4391138719
LanguageEN
References cited72

The concentration of population and socioeconomic activities in large cities in developing countries has sparked broad concerns regarding inequality in national urban systems (NUS). This paper examines how Chinese foreign trade and overseas foreign direct investment (OFDI) affected host countries' NUS from 2000 to 2018. Chinese foreign trade reduced NUS inequality, particularly countries with more cultural distance from China, while OFDI increased NUS inequality only in mineral-rich countries. For Asian Belt and Road countries (BRCs), Chinese foreign trade reduced NUS inequality, especially those with greater institutional distance to China and more government intervention. Chinese OFDI plays the opposite effect, notably for high government intervention countries. Globally, roles of foreign trade and OFDI change with resource endowments and cultural distance, while for Asian BRCs, these roles change with institutional distance and government intervention. This paper bridges gaps in the effects of Chinese foreign trade and OFDI on NUS inequality

China · Economics · Foreign direct investment · Geography · Inequality · International economics · International trade · Macroeconomics · Energy, Environment, Economic Growth · Fiscal Policy and Economic Growth · Regional Economics and Spatial Analysis

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