FDI AND CONVERGENCE ANALYSIS OF PRODUCTIVITY ACROSS CHINESE PREFECTURE-LEVEL CITIES THROUGH BOOTSTRAP TRUNCATION REGRESSION

Xingle Long, Sangwook Kim and Yunhai Dai
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Xingle Long: School of Management, Jiangsu University, Zhenjiang 212013, P. R. China†Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing 100081, P. R. China
Sangwook Kim: #x2021;Department of China Studies, Paichai University, Daejeon 302-735, Republic of Korea
Yunhai Dai: #xA7;Department of General Education, Namseoul University, Seonghwan 132101, Republic of Korea

The Singapore Economic Review (SER), 2021, vol. 66, issue 03, 837-853

Abstract: This paper evaluated productivity through metafrontier slacks-based measure, and explored the time and regional heterogeneity of productivity from static and dynamic perspectives. We also conducted convergence analysis on productivity. Our empirical results show that the east has the highest Technological Gap Ratio (TGR), which reveals that the east has the lowest production technology heterogeneity in China. Production heterogeneity has increased since 2004. FDI had negative effects on productivity, especially in the middle, west and northeast regions, which indicates FDI had a “crowding out” effect in China. Productivity displayed a convergence trend from 2004 to 2012. It is important for China’s local firms to enhance indigenous innovation and increase knowledge spillover in order to decrease their production technology gap.

Keywords: Crowding out; FDI; heterogeneity; convergence (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1142/S0217590819500425

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