Knowledge Spillovers from FDI in the People's Republic of China: The Role of Educated Labor in Multinational Enterprises

Yasuyuki Todo, Weiying Zhang () and Li-An Zhou

No 174, ADBI Working Papers from Asian Development Bank Institute

Abstract: This paper employs a firm-level panel data set for a high-tech cluster in the People's Republic of China to examine knowledge spillovers from multinational enterprises (MNEs) to domestic firms, focusing on the role of MNEs' employment of educated workers. We find that knowledge within MNEs spills over to domestic firms in the same industry through MNEs' employment of workers with graduate-level or overseas education. We also find that Japanese MNEs contribute less to knowledge spillovers than United States MNEs. This is most likely due to the fact that Japanese MNEs in the People's Republic of China do not employ as much educated labor.

Keywords: knowledge spillovers; foreign direct investment; educated labor; the peoples republic of china (search for similar items in EconPapers)
JEL-codes: F23 O12 O30 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2009-12-09
New Economics Papers: this item is included in nep-cna, nep-cse, nep-knm, nep-lab and nep-tra
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Citations: View citations in EconPapers (14)

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