FDI and the Export Performance of Chinese Indigenous Firms: a Regional Approach
AbstractThe primary purpose of this paper is to examine the impact of Foreign Direct Investment (FDI) on the export performance of Chinese indigenous firms. A panel data analysis is employed using data across 29 provinces over the 1985-99 period. Owing to the exceptionally uneven distribution of FDI, the analysis compares the impact of FDI on all provincial exports and exports of indigenous firms over the three macro-regions of China. While the findings of the empirical analysis should be viewed with caution, they do show that FDI has less influence on the export performance of indigenous firms than on all firms (foreign and indigenous). The findings imply that linkages between the foreign and domestic sectors need to be improved if FDI is to be a vehicle for improving the competitiveness of domestic firms. Alternatively, policies may have to be directed towards the indigenous firms themselves to enhance their export performance.
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Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal Journal of Chinese Economic and Business Studies.
Volume (Year): 2 (2004)
Issue (Month): 1 ()
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Find related papers by JEL classification:
- JEL - Labor and Demographic Economics - - - - -
- cla - - - - - -
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
- P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Business, and Aid
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