FDI Spillovers in China – Connecting the Missing Link between Micro and Macro

Natasha Agarwal () and Chris Milner

Discussion Papers from University of Nottingham, GEP

Abstract: Using a panel of 20,460 Chinese manufacturing firms over the period 2001-2005, we apply both parametric and non-parametric estimation techniques to examine the underlying relationship between the economic development of the host province and FDI spillovers. We find that provincial economic development does not systematically influence FDI spillovers. Moreover, there exists considerable heterogeneity in the FDI spillovers not only across the 29 provinces, municipalities and autonomous regions but also across the 10 manufacturing sectors within each of the 29 provinces, municipalities and autonomous regions. This suggests that FDI spillovers in China may be affected by a combination of both the characteristics of the sector within a province and the characteristics of the province itself.

Keywords: FDI spillovers; economic development; heterogeneity; China (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:not:notgep:11/20

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