This paper examines the association between government policy interventions, Foreign Direct Investment (FDI) and exports in Taiwan and China by applying the LP (Lumsdaine and Papell, 1997), approach allowing two endogenous structural breaks. This paper further explores the cointegrating...

China initiated economic reform in 1978 in the rural sector, state-owned sector, and non-state-owned sectors. The reform was extended to include foreign direct investment (FDI) and trade, particularly in the 1990s. Overall, the economic reform has been beneficial for rapid accumulating wealth...

A theoretical linkage between FDI and the host country's export can be explained by using the flying geese model, Vernon's PLC theory and new growth theory. Three theories have different explanations of FDI flows; however, they all argue that FDI has an influence on the export performance of the...