There has been renewed empirical work recently on testing the neoclassical model of economic growth using data on various groups of countries. But none of the cross-country regressions includes China, the largest developing economy in the world. This study utilises both cross-sectional and panel...

Purpose – The purpose of this paper is to examine if the knowledge spillover effect from foreign direct investment (FDI) inflow exists as well as its possible channels in China, and makes some policy suggestions. Design/methodology/approach – Based on the literature review, the paper sets a...

The paper considers time series GMM models where a subset of the parameters are time varying. The magnitude of the time variation in the unstable parameters is such that efficient tests detect the instability with (possibly high) probability smaller than one, even in the limit. We show that for...