FDI Spatial Spillovers in China
Mi Lin and
Yum K. Kwan
The World Economy, 2017, vol. 40, issue 8, 1514-1530
This paper studies FDI spatial spillovers in China. Empirical investigation reveals that, along the spatial dimension, FDI presence tends to generate negative intraregional spillovers that dominate other potential positive externalities. The direction, magnitude and scope of interâ€ regional spillovers vary, depending on the spillover channels. Our empirical findings call for a rethinking of policyâ€ driven agglomeration among indigenous firms and MNEs in developing countries.
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