The Impact of Foreign Direct Investment on the Productivity of China’s Automotive Industry

Peter J. Buckley, Jeremy Clegg, Ping Zheng, Pamela A. Siler and Gianluigi Giorgioni
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Peter J. Buckley: University of Leeds (CIBUL)
Jeremy Clegg: Leeds University Business School
Ping Zheng: University of Westminster
Pamela A. Siler: University of Abertay
Gianluigi Giorgioni: Liverpool John Moores University

Chapter 13 in Foreign Direct Investment, China and the World Economy, 2010, pp 284-304 from Palgrave Macmillan

Abstract: Abstract There is increasing interest in the impact of foreign direct investment (FDI) on host country productivity. However, contradictory empirical results have been obtained from a number of previous studies. Kokko et al (1994, 1996), Egger and Pfaffermayr (2001), Blomström and Persson (1983), and Bertschek (1995), for example, found evidence of a significant positive effect of FDI on spillovers. Haddad and Harrison (1993), Girma et al (2001), Kholdy (1995), Globerman (1979), and Veugelers and Houte (1990), however, found insignificant, or negative impacts in their empirical results. Interestingly, Aitken and Harrison (1999), Zukowska-Gagelmann (2000), and Djankov and Hoekman (2000) obtained a complicated pattern of mixed results in their respective studies. This paper adds to this important field of research by examining the impact of FDI on China’s automotive industrial productivity using a panel data set.

Keywords: Foreign Direct Investment; Labour Productivity; Foreign Investment; Automotive Industry; Positive Spillover (search for similar items in EconPapers)
Date: 2010
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DOI: 10.1057/9780230248328_13

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