Knowledge Spillovers from FDI in the People's Republic of China: The Role of Educated Labor in Multinational Enterprises
AbstractThis paper employs a firm-level panel data set for a high-tech cluster in the People's Republic of China to examine knowledge spillovers from multinational enterprises (MNEs) to domestic firms, focusing on the role of MNEs' employment of educated workers. We find that knowledge within MNEs spills over to domestic firms in the same industry through MNEs' employment of workers with graduate-level or overseas education. We also find that Japanese MNEs contribute less to knowledge spillovers than United States MNEs. This is most likely due to the fact that Japanese MNEs in the People's Republic of China do not employ as much educated labor.
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Bibliographic InfoPaper provided by Asian Development Bank Institute in its series ADBI Working Papers with number 174.
Length: 27 pages
Date of creation: 09 Dec 2009
Date of revision:
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knowledge spillovers; foreign direct investment; educated labor; the peoples republic of china;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-22 (All new papers)
- NEP-CNA-2010-05-22 (China)
- NEP-CSE-2010-05-22 (Economics of Strategic Management)
- NEP-KNM-2010-05-22 (Knowledge Management & Knowledge Economy)
- NEP-LAB-2010-05-22 (Labour Economics)
- NEP-TRA-2010-05-22 (Transition Economics)
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