Globalization, Foreign Direct Investment, and Regional Innovation in China

Yi Zhang and Hein Roelfsema ()

Chapter 2 in Foreign Direct Investment and Small and Medium Enterprises:Productivity and Access to Finance, 2015, pp 9-34 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This chapter explores the connection between the external opening of China and differences in innovation across Chinese regions. For the period 1995–2010, we find that regions that attract inward foreign direct investment (FDI) and exports have become more innovative. Further, we show a U-shaped relation between globalization, regional income levels, and innovation, where both the lower middle-income and the most advanced regions gain from globalization in terms of increased innovation. The higher middle-income regions gain little from globalization in terms of innovation. We provide evidence that differences in ownership structures of foreign investments and outsourcing drive the results.

Keywords: Foreign Direct Investment; The Spillover Effects; Small and Medium Enterprises; Regional Innovation; Entrepreneurial Activities; Trade and Investment; Bank Lending; Labor Productivity (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789814678810_0002 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789814678810_0002 (text/html)
Ebook Access is available upon purchase.

Related works:
Journal Article: Globalization, Foreign Direct Investment, and Regional Innovation in China (2014)
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:wsi:wschap:9789814678810_0002

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().