FDI and Technology Spillovers in China

Sea Jin Chang, Jaiho Chung and Dean Xu

No 2007-7, CEI Working Paper Series from Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University

Abstract: Using a database of Chinese firms, we examine the effects of technology spillovers not only between foreign entrants and local firms but also between "modernized" local firms to other local firms. Our results show that the increased presence of foreign multinationals within industries and in their upstream sectors positively affected the productivity of local firms. The positive intra-industry spillover effect from wholly owned subsidiaries becomes evident when the Chinese government's restriction on foreign ownership was lifted. We also find strong spillover effects among local firms.

Keywords: foreign direct investment; spillover effects; China (search for similar items in EconPapers)
JEL-codes: F2 O2 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2007-07
New Economics Papers: this item is included in nep-cna, nep-eff, nep-tid and nep-tra
Note: Very rough draft. Please do not circulate or quote.
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Citations: View citations in EconPapers (10)

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