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FDI Through The Imitation Procedure: The Case of China

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  • Metaxas, T.
  • Kechagia, P.

Abstract

Over the past decades great changes have taken place in the economic environment worldwide regarding the foreign direct investment (F.D.I.). However, some of the developing countries have managed to gain more F.D.I. compared to other developing countries via skills acquisition, competition, exports and imitation. These spillovers channels are used to transfer technological knowledge among firms, while the imitation is used by many multinational enterprises (MNEs) and it is considered one of the most important spillovers channels. Therefore, many Chinese enterprises have imitated the developed countries firms’ managerial and production procedures so far. China is one the largest recipient of F.D.I. inflow worldwide and the country’s development affects the policies and the growth of other developing countries. Hence, under certain circumstances, developing countries have the ability to attract F.D.I. through imitating China.

Suggested Citation

  • Metaxas, T. & Kechagia, P., 2013. "FDI Through The Imitation Procedure: The Case of China," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 13(1), pages 145-160.
    • Handle: RePEc:eaa:aeinde:v:13:y:2013:i:1_12
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    File URL: http://www.usc.es/economet/reviews/aeid13112.pdf
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    References listed on IDEAS

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    1. Brian J. Aitken & Ann E. Harrison, 2022. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 6, pages 139-152, World Scientific Publishing Co. Pte. Ltd..
    2. Yan Liang, 2007. "Does Foreign Direct Investment Provide Desirable Development Finance? The Case of China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 15(2), pages 104-120, March.
    3. Abeysinghe, Tilak & Lu, Ding, 2003. "China as an economic powerhouse: Implications on its neighbors," China Economic Review, Elsevier, vol. 14(2), pages 164-185.
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    Cited by:

    1. Polyxeni, Kechagia & Theodore, Metaxas, 2019. "An empirical investigation of FDI inflows in developing economies: Terrorism as a determinant factor," The Journal of Economic Asymmetries, Elsevier, vol. 20(C).
    2. Kechagia, Polyxeni & Metaxas, Theodore, 2016. "FDI in Central Asia: Uzbekistan," MPRA Paper 71326, University Library of Munich, Germany.

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    More about this item

    Keywords

    imitation; China; developing countries; spillovers channels.;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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