EconPapers    
Economics at your fingertips  
 

Do local manufacturing firms benefit from transactional linkages with multinational enterprises in China&quest

Xiaming Liu, Chengang Wang and Yingqi Wei ()
Additional contact information
Xiaming Liu: [1] Southwestern University of Finance and Economics, Chengdu, China[2] School of Management, Birkbeck College, University of London, London, UK

Journal of International Business Studies, 2009, vol. 40, issue 7, 1113-1130

Abstract: This paper examines the linkage effects of foreign direct investment (FDI) on firm-level productivity in Chinese manufacturing. It is found that FDI generates positive vertical linkage effects in Chinese manufacturing at both the national and regional levels, and limited positive horizontal spillovers at the regional level. While OECD firms gain from both vertical and (probably) horizontal linkages, Hong Kong, Macao and Taiwanese firms benefit only from backward linkage effects. In the domestic sector, in which we are most interested, both state-owned enterprises (SOEs) and non-SOEs are hurt by competition from foreign firms in the same industries. While SOEs gain from vertical linkages with foreign firms, non-SOEs are unable to do so. The patterns of productivity spillovers from FDI in Chinese manufacturing seem to be determined by one key factor – the technological capabilities of the firms involved. Important data limitations and policy implications of this research are discussed.

Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (72) Track citations by RSS feed

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v40/n7/pdf/jibs200897a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v40/n7/full/jibs200897a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jintbs:v:40:y:2009:i:7:p:1113-1130

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2023-01-03
Handle: RePEc:pal:jintbs:v:40:y:2009:i:7:p:1113-1130