An Empirical Study on FDI International Knowledge Spillovers and Regional Economic Development in China

Jiyong Chen (), Wei Liu, Yibo Zhang and Yangyi Sheng
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Jiyong Chen: Economics and Management School, Wuhan University, Wuhan 430072, China
Wei Liu: Economics and Management School, Wuhan University, Wuhan 430072, China
Yibo Zhang: Economics and Management School, Wuhan University, Wuhan 430072, China
Yangyi Sheng: Development Research Center, The People’s Government of Guangdong Province, Guangzhou 510031, China

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2010, vol. 5, issue 3, 489-508

Abstract: This article has constructed a framework to analyze the relationship between national innovation investments, international knowledge spillover due to FDI and regional technological progress. We use the panel data sample in 1992–2006 from China’s 29 provinces (municipalities or autonomous regions) to test the impact of China’s regional R&D investments, international knowledge spillovers of FDI on its regional technological progress. It reveals that the local investments in science and technology are the most important factors to promote technological progress; for the structure and quality of China’s current FDI, the knowledge spillover effects from FDI, especially through the FDI enterprises’ manufacturing activities, are not obvious; the local gains in its technology development from FDI depends on its economic and technological level. Based on the above conclusions we give the corresponding policy recommendations for China’s FDI policy and regional economic development.

Keywords: FDI; knowledge spillover; China regional economic development (search for similar items in EconPapers)
JEL-codes: F21 O33 R11 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:fec:journl:v:5:y:2010:i:3:p:489-508

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