FDI, trade, and spillover efficiency: evidence from China's manufacturing sector

Yih-chyi Chuang () and Pi-Fum Hsu

Applied Economics, 2004, vol. 36, issue 10, 1103-1115

Abstract: Using firm data from the 1995 Third Industrial Census of China, this paper finds that the presence of foreign ownership has a positive and significant effect on domestic firms' productivity. Moreover, trading with more advanced countries helps China gain access to new technology and information, which improves its productivity and enables it to compete in international markets. It is found that China's imports from OECD and the four Asian Tigers, and exports to OECD have positive effects on domestic firms' productivity. By dividing industries into high-technology-gap and low-technology-gap groups, it is found that the spillover effects of FDI are larger for the low-technology-gap group than for the high-technology-gap group. However, the estimation results of the trade-induced technology spillover effect support the technology-gap learning theory and the significance of importing appropriate technology.

Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (51)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/0003684042000246812 (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:taf:applec:v:36:y:2004:i:10:p:1103-1115

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/0003684042000246812

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().