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Technological spillovers and industrial growth in Chinese regions

Lili Wang (), Huub Meijers and Adam Szirmai

No 44, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

Abstract: This paper focuses on the role of interregional technology spillovers in the process of industrial growth in Chinese regions in the period 1990-2005. Inflows of FDIincreased rapidly from 1990 till 1998, slowing down thereafter. Domestic RDinvestment accelerated after 1998. Regional industrial growth benefits from bothinterregional RD spillovers and after 1998 from international FDI spillovers.However, in contrast to RD spillovers, FDI spillovers contribute conditionally,mainly in areas where local RD stocks are high enough. Interestingly, indirectinterregional FDI spillover effects are negative. Foreign investment in one regionattracts resources from regions with less FDI, thus having a negative influence ongrowth of industrial output in neighbouring regions.

Keywords: Economic Growth of Open Economies; Industrialization; Manufacturing and Service Industries; Choice of Technology; Technological Change; Diffusion Processes; Regional Economic Activity; Size and Spatial Distributions of Regional Economic Activity (search for similar items in EconPapers)
JEL-codes: F43 O14 O33 R11 R12 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-cse, nep-geo, nep-ino, nep-sbm, nep-tra and nep-ure
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Journal Article: Technological spillovers and industrial growth in Chinese regions (2017) Downloads
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