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In search of FDI horizontal spillovers in China: evidence from meta-analysis

Author

Listed:
  • Shi He

    (Huazhong University of Science and Technology
    City University of Hong Kong)

  • Yum K. Kwan

    (City University of Hong Kong)

  • Hongzhong Fan

    (Huazhong University of Science and Technology)

Abstract

This paper contributes to the literature on foreign direct investment (FDI) technology spillover effects, focusing on horizontal spillovers from foreign firms to their domestic competitors. Drawing on a unique dataset of 1018 estimates from 41 studies on FDI horizontal spillovers in China, our main objective is to quantitatively summarize reported estimates corrected for publication bias, and account for the heterogeneity in existing empirical results using meta-regression analysis. Robust to different specifications, we find that (1) the average horizontal spillover effect in China is positive and economically significant; (2) the horizontal spillover effects vary across subgroups of firms characterized by the nature of foreign-invested firms, origin of foreign-invested firms and ownership structure of domestic firms. The meta-regression analysis also uncovers the serious consequences of publication bias and reveals that the heterogeneity in research methods adopted by the profession to a large extent explains the diversity of the reported spillover estimates.

Suggested Citation

  • Shi He & Yum K. Kwan & Hongzhong Fan, 2019. "In search of FDI horizontal spillovers in China: evidence from meta-analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(3), pages 1505-1527, May.
    • Handle: RePEc:spr:qualqt:v:53:y:2019:i:3:d:10.1007_s11135-018-0825-3
    DOI: 10.1007/s11135-018-0825-3
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    References listed on IDEAS

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    More about this item

    Keywords

    Foreign direct investment; Horizontal spillover effect; Meta-regression analysis; Method and structural heterogeneity;
    All these keywords.

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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