The Effects of Foreign Direct Investment in Industrial Sector

The book explores the relationship between foreign direct investment (FDI) and regional inequality in China following the 1978 economic reforms. It highlights how China's rapid GDP growth and favorable business climate attracted significant foreign capital, yet the benefits were not uniformly distributed. Through descriptive and quantitative models, the author reveals that FDI influences and is influenced by regional disparities, with factors like technology, human capital, and government policies playing crucial roles. Despite advancements, FDI inflows have exacerbated the wealth gap between regions.