Inward FDI and Host Country Productivity: Evidence from China’s Electronics Industry

Peter J. Buckley, Jeremy Clegg and Chengqi Wang
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Peter J. Buckley: University of Leeds (CIBUL)
Jeremy Clegg: Leeds University Business School
Chengqi Wang: Nottingham University Business School

Chapter 10 in Foreign Direct Investment, China and the World Economy, 2010, pp 216-238 from Palgrave Macmillan

Abstract: Abstract There has been a great deal of research examining whether foreign affiliates exhibit higher levels of productivity than local firms (see, for example, Aitken and Harrison, 1999). The premise for this is that the firm-specific assets of transnational corporations (TNCs) increase productivity in FDI-receiving firms (Egger and Pfaffermayr, 2001). If this is the case, one would expect FDI to enhance overall industry performance as measured, for example, by labour productivity through this direct effect on foreign affiliate performance. Empirical research supports the view that firms with foreign equity participation outperform firms that are entirely locally-owned (see, for example, Blomström and Sjöholm, 1999).

Keywords: Foreign Direct Investment; Host Country; Labour Productivity; Spillover Effect; Intangible Asset (search for similar items in EconPapers)
Date: 2010
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DOI: 10.1057/9780230248328_10

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