Technology Spillovers from Multinationals to Local Firms: Evidence from Automobile and Electronics Firms in China

Kazuyuki Motohashi and Yuan Yuan

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: This study compares knowledge spillovers from multinationals to local firms in China between the automobile and electronics industries. In the automobile industry we find that multinationals in the assembly industry affect vertical spillovers to domestic parts supply firms, and horizontal spillovers also exist between domestic parts suppliers. In contrast, we cannot find vertical spillover effects of multinationals in the assembly industry to domestic suppliers in the electronics industry, only horizontal spillover effects from multinationals to domestic supply firms can be found. A different pattern of technology spillover suggests the importance of customization of FDI policy by industry.

Pages: 32 pages
Date: 2009-02
New Economics Papers: this item is included in nep-cna, nep-dev, nep-tra and nep-ure
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:09005

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