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Inward FDI and Host Country Productivity: Evidence from China’s Electronics Industry

In: Foreign Direct Investment, China and the World Economy

Author

Listed:
  • Peter J. Buckley

    (University of Leeds (CIBUL))

  • Jeremy Clegg

    (Leeds University Business School)

  • Chengqi Wang

    (Nottingham University Business School)

Abstract

There has been a great deal of research examining whether foreign affiliates exhibit higher levels of productivity than local firms (see, for example, Aitken and Harrison, 1999). The premise for this is that the firm-specific assets of transnational corporations (TNCs) increase productivity in FDI-receiving firms (Egger and Pfaffermayr, 2001). If this is the case, one would expect FDI to enhance overall industry performance as measured, for example, by labour productivity through this direct effect on foreign affiliate performance. Empirical research supports the view that firms with foreign equity participation outperform firms that are entirely locally-owned (see, for example, Blomström and Sjöholm, 1999).

Suggested Citation

  • Peter J. Buckley & Jeremy Clegg & Chengqi Wang, 2010. "Inward FDI and Host Country Productivity: Evidence from China’s Electronics Industry," Palgrave Macmillan Books, in: Foreign Direct Investment, China and the World Economy, chapter 10, pages 216-238, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-24832-8_10
    DOI: 10.1057/9780230248328_10
    as

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