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The logic of spillover interception: The impact of global supply chains in China

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  • Hatani, Faith
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    Abstract

    Drawing on the global value chain analysis and institutional views, this paper explains the mechanism of "spillover interception," a structural obstacle to technology spillovers in emerging economies. Contrary to the widely accepted perception that FDI is expected to generate spillover of intermediate technology in particular, the findings indicate that excess inward FDI could structurally inhibit technology spillovers even at the lower tiers of the supply hierarchy within the emerging economy context. Based on an exploratory case study of the Chinese automotive industry, the paper analyses the net impact of global supply chains, and calls for a more comprehensive policy coordination.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 44 (2009)
    Issue (Month): 2 (April)
    Pages: 158-166

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    Handle: RePEc:eee:worbus:v:44:y:2009:i:2:p:158-166

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    Keywords: Global value chains Automotive industry Technology transfer Emerging markets China;

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    Cited by:
    1. Wang, Chengqi & Deng, Ziliang & Kafouros, Mario I. & Chen, Yan, 2012. "Reconceptualizing the spillover effects of foreign direct investment: A process-dependent approach," International Business Review, Elsevier, vol. 21(3), pages 452-464.
    2. Hatani, Faith & McGaughey, Sara L., 2013. "Network cohesion in global expansion: An evolutionary view," Journal of World Business, Elsevier, vol. 48(4), pages 455-465.
    3. Tattara, Giuseppe, 2012. "From competitive advantage to dynamic capabilities: small and medium-sized multinationals in Asia," MPRA Paper 39364, University Library of Munich, Germany.

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