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Does Firm Ownership Affect Spillover Opportunities? Evidence From Chinese Manufacturing

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  • Fariha Kamal

Abstract

type="main"> The clustering of economic activity is believed to generate both positive own-industry (localization) spillovers and negative competitive pressures. Using data on manufacturing enterprises operating in China during 1998–2006, this paper provides evidence on the net effect of opposing spillovers from nearby economic activity. Central to the analysis is the opportunity to distinguish local manufacturing enterprises by state, private, or foreign ownership. Systematic differences in average productivity of these firms enable inferences about differences in the strength of spillovers from one type of firm to another type. Results indicate that spillovers are larger within the same ownership type than they are across them, consistent with localization economies that operate within segmented channels of influence.

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  • Fariha Kamal, 2014. "Does Firm Ownership Affect Spillover Opportunities? Evidence From Chinese Manufacturing," Journal of Regional Science, Wiley Blackwell, vol. 54(1), pages 137-154, January.
    • Handle: RePEc:bla:jregsc:v:54:y:2014:i:1:p:137-154
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    2. Boeing, Philipp & Mueller, Elisabeth & Sandner, Philipp, 2016. "China's R&D explosion—Analyzing productivity effects across ownership types and over time," Research Policy, Elsevier, vol. 45(1), pages 159-176.
    3. Bruno Merlevede & Victoria Purice, 2016. "Distance, time since foreign entry, and productivity spillovers from foreign direct investment," Papers in Regional Science, Wiley Blackwell, vol. 95(4), pages 775-800, November.
    4. Hu, Chenguang & Li, Jiatao & Yun, Kyung Hwan, 2023. "Re-examining foreign subsidiary survival in a transition economy: Impact of market identity overlap and conflict," Journal of World Business, Elsevier, vol. 58(3).
    5. Bruno Merlevede & Victoria Purice, 2014. "Distance, Time since Foreign Entry, and Knowledge Spillovers from Foreign Direct Investment," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 14/896, Ghent University, Faculty of Economics and Business Administration.

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