While trade integration is often regarded as a principal determinant of economic growth, the empirical evidence for a causal linkage between trade and growth is ambiguous. This paper argues that the effect of trade in dynamic panel estimations depends crucially on the specification of trade....

The paper presents a review of theoretical concepts and empirical findings on the issue of FDI-induced spillover and crowding-effects in the Chinese economy. Against the background of the peculiar characteristics of China's FDI-inflows the paper discusses various research agendas and results. It...