Since 2007 China has considerably reduced its external global imbalances. Its bilateral trade surpluses with the EU and the US have persisted because the rise of China’s import demand has mainly benefited its Asian neighbors and the resource rich countries. The rapid growth of China’s...

Purpose – The purpose of this paper is to simulate the function of foreign trade, foreign direct investment (FDI) and regional gross domestic product (GDP) in China, explore how these two variables affect regional GDP together and provide evidence to export-led growth (ELG) and FDI-led growth....