Productivity Spillovers from FDI in the People's Republic of China: A Nuanced View

Cheryl Xiaoning Long (), Galina Hale and Hirotaka Miura
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Cheryl Xiaoning Long: Professor, Xiamen University and Colgate University
Hirotaka Miura: GE Japan Corporation

Asian Development Review, 2014, vol. 31, issue 2, 77-108

Abstract: Using panel data from the Chinese Industrial Surveys of Medium-sized and Large Firms for 2000–2006, we show that the presence and the magnitude of technological spillovers from FDI in the People's Republic of China are affected by the source of FDI, by the ownership type of a firm in consideration, as well as by industrial and provincial characteristics. Private firms are more likely to benefit from horizontal spillovers than other domestic firms, but are less likely to benefit from vertical ones. Presence of state-owned firms in the industry impedes technological spillovers in a way that is consistent with diversion of linkages from private to state-owned firms. Finally, horizontal spillovers are larger in industries that are more technologically sophisticated. © 2013 Asian Development Bank and Asian Development Bank Institute.

Keywords: FDI; spillover; diversion; linkages; technology; domestic firms; state-owned firms (search for similar items in EconPapers)
JEL-codes: F00 L10 O30 O39 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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