Direct effect of ownership and technology import: Firm level evidence from large and medium-enterprises in Shanghai

Pingfang Zhu () and Lei Li
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Pingfang Zhu: Research Institute of Econometrics, Shanghai University of Finance and Economics, Shanghai 200433, China; Center for Economic Studies, Shanghai Jiao Tong University, Shanghai 200030, China
Lei Li: Research Institute of Econometrics, Shanghai University of Finance and Economics, Shanghai 200433, China

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2007, vol. 2, issue 1, 74-91

Abstract: This paper explores the direct effect of ownership and technology imports under the framework of neoclassical economic theory. The econometric analysis is based on panel data from a random sample of large and medium-enterprises in Shanghai, during the period of 1998 to 2003. The results show that Sino-foreign joint ventures, Sino-foreign cooperative enterprises and foreign-funded enterprises (SANZI) enjoy higher labor productivity and total factor productivity (TFP) than domestic enterprises. Intra-firm diffusion of non-codified technology, proxied by ownership, is the main source of their better performance, whereas internally transferred codified technology makes little contribution to TFP. For state-owned enterprises, codified technology imports have significantly raised both labor productivity and TFP, but such positive effect is significantly dependent on the S&T human resource. In contrast, no evidence supports that introduction of foreign technology has enhanced the productivity in domestic nonstate-owned enterprises. The empirical results indicate that SANZI do not have a distinct advantage in their codified technology. In addition, inadequate investment in assimilation process and research and development together with inefficient management of science and technology activities, may impede the use of imported technology.

Keywords: technology import; direct effect; FDI; labor productivity; TFP (search for similar items in EconPapers)
JEL-codes: D24 J24 O16 O33 (search for similar items in EconPapers)
Date: 2007
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