Advanced Search
MyIDEAS: Login to save this article or follow this journal

Productivity spillovers from R&D, exports and FDI in China's manufacturing sector

Contents:

Author Info

  • Y Wei

    ([1] International Business Research Group, Department of Economics, Management School, Lancaster University, UK [2] College of Economics and Trade, Hunan University, China)

  • X Liu

    (School of Management, University of Surrey, Guildford, UK)

Abstract

This paper assesses productivity spillovers from R&D, exports and the very presence of foreign direct investment (FDI) in China's manufacturing sector, based on a panel of more than 10,000 indigenous and foreign-invested firms for 1998–2001. There are positive inter-industry productivity spillovers from R&D and exports, and positive intra- and inter-industry productivity spillovers from foreign presence to indigenous Chinese firms within regions. OECD-invested firms seem to play a much greater role in inter-industry spillovers than overseas Chinese firms from Hong Kong, Macao and Taiwan within regions. The findings have important managerial and policy implications. Journal of International Business Studies (2006), 37, 544–557. doi:10.1057/palgrave.jibs.8400209

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.palgrave-journals.com/jibs/journal/v37/n4/pdf/8400209a.pdf
File Function: Link to full text PDF
Download Restriction: Access to full text is restricted to subscribers.

File URL: http://www.palgrave-journals.com/jibs/journal/v37/n4/full/8400209a.html
File Function: Link to full text HTML
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Palgrave Macmillan in its journal Journal of International Business Studies.

Volume (Year): 37 (2006)
Issue (Month): 4 (July)
Pages: 544-557

as in new window
Handle: RePEc:pal:jintbs:v:37:y:2006:i:4:p:544-557

Contact details of provider:
Web page: http://www.palgrave-journals.com/

Order Information:
Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
Email:
Web: http://www.palgrave-journals.com/pal/subscribe/index.html

Related research

Keywords:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Jingjing Yang & Helian Xu & Chengang Wang & Mingyong Lai & Yingqi Wei, 2009. "Productivity spillovers from foreign direct investment in Chinese industries," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 7(4), pages 429-446.
  2. Braconier, Henrik & Sjöholm, Fredrik, 1997. "National and International Spillovers from R&D: Comparing a Neoclassical and an Endogenous Growth Approach," Working Paper Series in Economics and Finance, Stockholm School of Economics 211, Stockholm School of Economics.
  3. Blomström, Magnus & Kokko, Ari, 1996. "Multinational Corporations and Spillovers," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1365, C.E.P.R. Discussion Papers.
  4. Xiaming Liu & Pamela Siler & Chengqi Wang & Yingqi Wei, 2000. "Productivity Spillovers From Foreign Direct Investment: Evidence From UK Industry Level Panel Data," Journal of International Business Studies, Palgrave Macmillan, Palgrave Macmillan, vol. 31(3), pages 407-425, September.
  5. Ann E. Harrison & Brian J. Aitken, 1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," American Economic Review, American Economic Association, American Economic Association, vol. 89(3), pages 605-618, June.
  6. Bruno Van Pottelsberghe De La Potterie & Frank Lichtenberg, 2001. "Does Foreign Direct Investment Transfer Technology Across Borders?," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 490-497, August.
  7. Yang, Dennis Tao, 2002. "What has caused regional inequality in China?," China Economic Review, Elsevier, Elsevier, vol. 13(4), pages 331-334, December.
  8. Rivera-Batiz, Luis A & Romer, Paul M, 1991. "Economic Integration and Endogenous Growth," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 106(2), pages 531-55, May.
  9. Liu, Xiaming & Parker, David & Vaidya, Kirit & Wei, Yingqi, 2001. "The impact of foreign direct investment on labour productivity in the Chinese electronics industry," International Business Review, Elsevier, Elsevier, vol. 10(4), pages 421-439, August.
  10. Sofronis Clerides & Saul Lach & James Tybout, 1996. "Is "Learning-by-Exporting" Important? Micro-Dynamic Evidence from Colombia, Mexico and Morocco," NBER Working Papers 5715, National Bureau of Economic Research, Inc.
  11. Gorg, Holger & Strobl, Eric, 2001. "Multinational Companies and Productivity Spillovers: A Meta-analysis," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 111(475), pages F723-39, November.
  12. Kaiser, Ulrich, 1999. "Measuring Knowledge Spillovers in Manufacturing and Services: An Empirical Assessment of Alternative Approaches," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 99-62, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  13. Albert G. Z. Hu & Gary H. Jefferson, 2002. "FDI Impact and Spillover: Evidence from China's Electronic and Textile Industries," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 25(8), pages 1063-1076, 08.
  14. Mansfield, Edwin & Romeo, Anthony, 1980. "Technology Transfer to Overseas Subsidiaries by U.S.-Based Firms," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 95(4), pages 737-50, December.
  15. Raut, Lakshmi K., 1995. "R & D spillover and productivity growth: Evidence from Indian private firms," Journal of Development Economics, Elsevier, Elsevier, vol. 48(1), pages 1-23, October.
  16. Rivera-Batiz, Luis A. & Romer, Paul M., 1991. "International trade with endogenous technological change," European Economic Review, Elsevier, Elsevier, vol. 35(4), pages 971-1001, May.
  17. Vinish Kathuria, 2002. "Liberalisation, FDI, and productivity spillovers--an analysis of Indian manufacturing firms," Oxford Economic Papers, Oxford University Press, vol. 54(4), pages 688-718, October.
  18. Liu, Zhiqiang, 2002. "Foreign Direct Investment and Technology Spillover: Evidence from China," Journal of Comparative Economics, Elsevier, vol. 30(3), pages 579-602, September.
  19. Frances Ruane & Ali Uğur, 2005. "Foreign direct investment and productivity spillovers in Irish manufacturing industry: evidence from plant level panel data," International Journal of the Economics of Business, Taylor & Francis Journals, Taylor & Francis Journals, vol. 12(1), pages 53-66.
  20. Görg, Holger & Greenaway, David, 2003. "Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?," IZA Discussion Papers 944, Institute for the Study of Labor (IZA).
  21. Walid Hejazi & A Edward Safarian, 1999. "Trade, Foreign Direct Investment, and R&D Spillovers," Journal of International Business Studies, Palgrave Macmillan, Palgrave Macmillan, vol. 30(3), pages 491-511, September.
  22. Bruno Van Pottelsberghe & Frank Lichtenberg, 1998. "International R&D spillovers comment," ULB Institutional Repository, ULB -- Universite Libre de Bruxelles 2013/6233, ULB -- Universite Libre de Bruxelles.
  23. Maurice Obstfeld & Kenneth S. Rogoff, 1996. "Foundations of International Macroeconomics," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262150476, December.
  24. Smarzynska, Beata K., 2002. "Does foreign direct investment increase the productivity of domestic firms : in search of spillovers through backward linkages," Policy Research Working Paper Series, The World Bank 2923, The World Bank.
  25. Susan E Feinberg & Sumit K Majumdar, 2001. "Technology Spillovers from Foreign Direct Investment in the Indian Pharmaceutical Industry," Journal of International Business Studies, Palgrave Macmillan, Palgrave Macmillan, vol. 32(3), pages 421-437, September.
  26. Peter J Buckley & Jeremy Clegg & Chengqi Wang, 2002. "The Impact of Inward FDI on the Performance of Chinese Manufacturing Firms," Journal of International Business Studies, Palgrave Macmillan, Palgrave Macmillan, vol. 33(4), pages 637-655, December.
  27. Haddad, Mona & Harrison, Ann, 1993. "Are there positive spillovers from direct foreign investment? : Evidence from panel data for Morocco," Journal of Development Economics, Elsevier, Elsevier, vol. 42(1), pages 51-74, October.
  28. Sinani, Evis & Meyer, Klaus E., 2004. "Spillovers of technology transfer from FDI: the case of Estonia," Journal of Comparative Economics, Elsevier, vol. 32(3), pages 445-466, September.
  29. Li, Xiaoying & Liu, Xiaming & Parker, David, 2001. "Foreign direct investment and productivity spillovers in the Chinese manufacturing sector," Economic Systems, Elsevier, Elsevier, vol. 25(4), pages 305-321, December.
  30. V N Balasubramanyam & M Salisu & David Sapsford., . "Foreign Direct Investment and Growth in EP and IS Countries," Working Papers, Department of Economics, University of Lancaster ec18/94, Department of Economics, University of Lancaster.
  31. Cecile Batisse & Sandra Poncet, 2004. "Protectionism and Industry Location in Chinese Provinces," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 2(2), pages 133-154.
  32. Ping Zheng & Pamela Siler & Gianluigi Giorgioni, 2004. "FDI and the Export Performance of Chinese Indigenous Firms: a Regional Approach," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 2(1), pages 55-71.
  33. Cai, Fang & Wang, Dewen & Du, Yang, 2002. "Regional disparity and economic growth in China: The impact of labor market distortions," China Economic Review, Elsevier, Elsevier, vol. 13(2-3), pages 197-212.
  34. Caves, Richard E, 1974. "Multinational Firms, Competition, and Productivity in Host-Country Markets," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 41(162), pages 176-93, May.
  35. Kul B. Luintel & Mosahid Khan, 2004. "Are International R&D Spillovers Costly for the United States?," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 896-910, November.
  36. Jeffrey I. Bernstein, 2000. "Canadian Manufacturing, U.S. R&D Spillovers, And Communication Infrastructure," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 608-615, November.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Natasha Agarwal & Chris Milner & Alejandro Riaño, . "Credit Constraints and FDI Spillovers in China," Discussion Papers 11/21, University of Nottingham, GEP.
  2. Keupp, Marcus Matthias & Friesike, Sascha & von Zedtwitz, Maximilian, 2012. "How do foreign firms patent in emerging economies with weak appropriability regimes? Archetypes and motives," Research Policy, Elsevier, Elsevier, vol. 41(8), pages 1422-1439.
  3. Elisa Giuliani & Chiara Macchi, 2013. "Multinational Corporations’ Economic And Human Rights Impacts On Developing Countries: A Review And Research Agenda," Discussion Papers, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy 2013/158, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  4. Mita Bhattacharya & Jong-Rong Chen & V. Pradeep Author-X-Name- V, 2008. "Productivity Spillovers In Indian Manufacturing Firms," Development Research Unit Working Paper Series, Monash University, Department of Economics 30/08, Monash University, Department of Economics.
  5. Markus Eberhardt & Christian Helmers & Zhihong Yu, . "Is the Dragon Learning to Fly? An Analysis of the Chinese Patent Explosion," Discussion Papers 11/16, University of Nottingham, GEP.
  6. Anwar, Sajid & Sun, Sizhong, 2012. "FDI and market entry/exit: Evidence from China," Journal of Asian Economics, Elsevier, Elsevier, vol. 23(5), pages 487-498.
  7. Luo, Xubei & Zhu, Nong, 2014. "What drives the volatility of firm level productivity in China ?," Policy Research Working Paper Series, The World Bank 6846, The World Bank.
  8. Natasha Agarwal & Chris Milner, . "FDI Spillovers in China – Connecting the Missing Link between Micro and Macro," Discussion Papers 11/20, University of Nottingham, GEP.
  9. Huang, Shu-Chin, 2013. "Capital outflow and R&D investment in the parent firm," Research Policy, Elsevier, Elsevier, vol. 42(1), pages 245-260.
  10. Gu, Weishi & Awokuse, Titus O. & Yuan, Yan, 2008. "The Contribution of Foreign Direct Investment to China's Export Performance: Evidence from Disaggregated Sectors," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 6453, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  11. García, Francisco & Avella, Lucía & Fernández, Esteban, 2012. "Learning from exporting: The moderating effect of technological capabilities," International Business Review, Elsevier, Elsevier, vol. 21(6), pages 1099-1111.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pal:jintbs:v:37:y:2006:i:4:p:544-557. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elizabeth Gale).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.