ANALYZING THE EFFECTS OF FDI, RESEARCH AND DEVELOPMENT EXPENDITURE AND INFLATION OVER EXPORTS: CASE OF CHINA
Keywords:
export, research and development, inflationAbstract
This paper analyzes several factors that enhanced export in China during the period from 2000 to 2023.Having into consideration the regulational changes and the favorable position of China towards foreign investment the study focuses on foreign investment ,research and development expenditure and inflation and their effect on exports.In order to conduct the analysis annual data were taken from World Bank reports.
Using a regression model, results revealed that inward foreign investment and Research and development expenditure have a statistically significant positive effect on exports, suggesting that foreign investment and increased innovation have crucial roles in increasing export . On the other side, inflation is shown to have a negative effect on exports, likely because of higher production costs and reduced competitiveness.
The findings from this research highlight the importance of fostering foreign investment and innovation through R&D, while controlling inflation for having increased export. The results are relevant for policymakers and businesses that strive to enhance China's export competitiveness in the international markets
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