Foreign direct investment spillovers and regional innovation in China: The spatial moderating role of absorptive capacity

Yuxue Sheng, Xin Yang, Yao‐Yu Chih and Jun Zhang

Review of Development Economics, 2024, vol. 28, issue 4, 1803-1837

Abstract: This study examines the relationship between foreign direct investment (FDI) and regional innovation relationship in Chinese cities from 2009 to 2018, considering the influence of local absorptive capacity (ABC). We employ spatial panel regression moderated models with an interaction term between ABC and FDI. Our findings reveal spatial correlation and heterogeneity in the impact of FDI on regional innovation. Across various ABC percentile points, both direct and indirect effects of FDI are significantly negative. However, incorporating the moderating variable ABC weakens the detrimental effect, and as ABC increases, the inhibitory effect dissipates, resulting in a positive impact on regional innovation.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/rode.13122

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:rdevec:v:28:y:2024:i:4:p:1803-1837

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1363-6669

Access Statistics for this article

Review of Development Economics is currently edited by E. Kwan Choi

More articles in Review of Development Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().