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Why has China grown so fast? The role of international technology transfer

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  • Linda Yueh
  • Linda Yueh
  • John Van Reenen

Abstract

Chinese economic growth has been spectacular in the last 30 years.� We investigate the role of International Joint Ventures with Technology Transfer agreements, an understudied area.� Technology transfer is the traditional mechanism for developing countries to "catch up" and has been a key component of Chinese economic policy.� We collect original survey data on Chinese firms and their joint ventures and match this to administrative data on firm performance.� To identify the causal effect of joint ventures we use time-varying and province-specific policies at the time when a firm was born.� International joint ventures in general and I have large effects on productivity especially when combined with a technology transfer component.� We estimate that without International joint ventures China's growth would have been about one percentage point lower per annum over the last three decades.

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Bibliographic Info

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 592.

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Date of creation: 01 Jan 2012
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Handle: RePEc:oxf:wpaper:592

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Keywords: China; Technology transfer; Joint ventures; Productivity;

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  1. Kjetil Storesletten & Fabrizio Zilibotti & Zheng Song, 2009. "Growing like China," 2009 Meeting Papers 912, Society for Economic Dynamics.
  2. Alfred D. Chandler, 1969. "Strategy and Structure: Chapters in the History of the American Industrial Enterprise," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262530090.
  3. Bloom, Nick & Dorgan, Stephen & Dowdy, John & Van Reenen, John & Rippin, Tom, 2005. "Management practices across firms and nations," Open Access publications from London School of Economics and Political Science CEPSP17, London School of Economics and Political Science.
  4. Nicholas Bloom & John Van Reenen, 2010. "Why Do Management Practices Differ across Firms and Countries?," Journal of Economic Perspectives, American Economic Association, vol. 24(1), pages 203-24, Winter.
  5. Dougherty, Sean & Herd, Richard & He, Ping, 2007. "Has a private sector emerged in China's industry? Evidence from a quarter of a million Chinese firms," China Economic Review, Elsevier, vol. 18(3), pages 309-334.
  6. Yeaple, Stephen & Helpman, Elhanan & Melitz, Marc, 2004. "Export versus FDI with Heterogeneous Firms," Scholarly Articles 3229098, Harvard University Department of Economics.
  7. Ann E. Harrison & Brian J. Aitken, 1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," American Economic Review, American Economic Association, vol. 89(3), pages 605-618, June.
  8. Haddad, Mona & Harrison, Ann, 1993. "Are there positive spillovers from direct foreign investment? : Evidence from panel data for Morocco," Journal of Development Economics, Elsevier, vol. 42(1), pages 51-74, October.
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