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FDI Spatial Spillovers in China

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  • Mi Lin
  • Yum K. Kwan

Abstract

This paper studies FDI spatial spillovers in China. Empirical investigation reveals that, along the spatial dimension, FDI presence tends to generate negative intraregional spillovers that dominate other potential positive externalities. The direction, magnitude and scope of inter†regional spillovers vary, depending on the spillover channels. Our empirical findings call for a rethinking of policy†driven agglomeration among indigenous firms and MNEs in developing countries.

Suggested Citation

  • Mi Lin & Yum K. Kwan, 2017. "FDI Spatial Spillovers in China," The World Economy, Wiley Blackwell, vol. 40(8), pages 1514-1530, August.
  • Handle: RePEc:bla:worlde:v:40:y:2017:i:8:p:1514-1530
    DOI: 10.1111/twec.12337
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    3. Kyriakos C. Neanidis & Christos S. Savva, 2020. "Cross-Border Spillovers in Foreign Currency Credit," Economics Discussion Paper Series 2002, Economics, The University of Manchester.
    4. Hongzhong Fan & Shi He & Yum K. Kwan, 2019. "Foreign direct investment and productivity spillovers: is China different?," Applied Economics Letters, Taylor & Francis Journals, vol. 26(20), pages 1675-1682, November.

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