IDEAS home Printed from https://ideas.repec.org/a/eee/respol/v38y2009i5p813-828.html
   My bibliography  Save this article

Manufacturing dynamics and spillovers: The case of Guangdong Province and Hong Kong, Macau, and Taiwan (HKMT)

Author

Listed:
  • Huang, Can
  • Sharif, Naubahar

Abstract

In this paper we characterize the extent of economic integration between Guangdong, Hong Kong, Macau, and Taiwan (HKMT). We do not find, for the period of 1999-2003, consistent evidence that economic activity on the part of HKMT-funded companies contributed to productivity growth in Guangdong domestic manufacturing firms. Furthermore, HKMT-funded companies were less active than Guangdong domestic companies in pursuing research and development (R&D) and innovation activities. Given that HKMT-funded companies in Guangdong are dominated by companies from Hong Kong, we end by linking our results to a discussion of recent innovation policy actions, both in Hong Kong SAR and Guangdong province.

Suggested Citation

  • Huang, Can & Sharif, Naubahar, 2009. "Manufacturing dynamics and spillovers: The case of Guangdong Province and Hong Kong, Macau, and Taiwan (HKMT)," Research Policy, Elsevier, vol. 38(5), pages 813-828, June.
  • Handle: RePEc:eee:respol:v:38:y:2009:i:5:p:813-828
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0048-7333(08)00303-X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wang, Zhi & Schuh, Edward G., 2002. "The Emergence of a Greater China and Its Impact on World Trade: A Computable General Equilibrium Analysis," Journal of Comparative Economics, Elsevier, vol. 30(3), pages 531-566, September.
    2. Chyau Tuan & Linda Fung‐Yee Ng, 2004. "FDI and Industrial Restructuring in Post‐WTO Greater PRD: Implications on Regional Growth in China," The World Economy, Wiley Blackwell, vol. 27(10), pages 1609-1630, November.
    3. Liu, Zhiqiang, 2002. "Foreign Direct Investment and Technology Spillover: Evidence from China," Journal of Comparative Economics, Elsevier, vol. 30(3), pages 579-602, September.
    4. Ng, Linda F. Y. & Tuan, Chyau, 2003. "Location decisions of manufacturing FDI in China: implications of China's WTO accession," Journal of Asian Economics, Elsevier, vol. 14(1), pages 51-72, February.
    5. Kamath, Shyam J, 1990. "Foreign Direct Investment in a Centrally Planned Developing Economy: The Chinese Case," Economic Development and Cultural Change, University of Chicago Press, vol. 39(1), pages 106-130, October.
    6. 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.
    7. Godfrey Yeung, 2002. "WTO Accession, the Changing Competitiveness of Foreign-financed Firms and Regional Development in Guangdong of Southern China," Regional Studies, Taylor & Francis Journals, vol. 36(6), pages 627-642.
    8. Kamal Saggi, 2002. "Trade, Foreign Direct Investment, and International Technology Transfer: A Survey," World Bank Research Observer, World Bank Group, vol. 17(2), pages 191-235, September.
    9. Fan, C. Simon & Hu, Yifan, 2007. "Foreign direct investment and indigenous technological efforts: Evidence from China," Economics Letters, Elsevier, vol. 96(2), pages 253-258, August.
    10. Roger C. K. Chan, 2002. "Towards strategic planning and regional sustainability: Hong Kong in the Pearl River Delta Region," Sustainable Development, John Wiley & Sons, Ltd., vol. 10(3), pages 122-130.
    11. Jefferson, Gary H. & Rawski, Thomas G. & Zheng, Yuxin, 1996. "Chinese Industrial Productivity: Trends, Measurement Issues, and Recent Developments," Journal of Comparative Economics, Elsevier, vol. 23(2), pages 146-180, October.
    12. Daniel, Francis & Lohrke, Franz T. & Fornaciari, Charles J. & Turner, R. Jr., 2004. "Slack resources and firm performance: a meta-analysis," Journal of Business Research, Elsevier, vol. 57(6), pages 565-574, June.
    13. Caves, Richard E, 1974. "Multinational Firms, Competition, and Productivity in Host-Country Markets," Economica, London School of Economics and Political Science, vol. 41(162), pages 176-193, May.
    14. Blomstrom, Magnus, 1986. "Foreign Investment and Productive Efficiency: The Case of Mexico," Journal of Industrial Economics, Wiley Blackwell, vol. 35(1), pages 97-110, September.
    15. Liu, Zhiqiang, 2008. "Foreign direct investment and technology spillovers: Theory and evidence," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 176-193, February.
    16. Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, vol. 94(3), pages 605-627, June.
    17. Javorcik, Beata Smarzynska & Spatareanu, Mariana, 2008. "To share or not to share: Does local participation matter for spillovers from foreign direct investment?," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 194-217, February.
    18. 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.
    19. Honglin Zhang, Kevin, 2005. "Why does so much FDI from Hong Kong and Taiwan go to Mainland China?," China Economic Review, Elsevier, vol. 16(3), pages 293-307.
    20. Blomstrom, Magnus & Kokko, Ari, 1998. "Multinational Corporations and Spillovers," Journal of Economic Surveys, Wiley Blackwell, vol. 12(3), pages 247-277, July.
    21. Tuan, Chyau & Ng, Linda F. Y., 2003. "FDI facilitated by agglomeration economies: evidence from manufacturing and services joint ventures in China," Journal of Asian Economics, Elsevier, vol. 13(6), pages 749-765, January.
    22. Jefferson, Gary H & Rawski, Thomas G & Yuxin, Zheng, 1992. "Growth, Efficiency, and Convergence in China's State and Collective Industry," Economic Development and Cultural Change, University of Chicago Press, vol. 40(2), pages 239-266, January.
    23. Baltagi, Badi H. & Wu, Ping X., 1999. "Unequally Spaced Panel Data Regressions With Ar(1) Disturbances," Econometric Theory, Cambridge University Press, vol. 15(6), pages 814-823, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen, Fang & Mohnen, Pierre, 2009. "FDI, R&D and Innovation Output in the Chinese Automobile Industry," MERIT Working Papers 2009-044, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Hongzhong Fan & Shi He & Yum K. Kwan, 2020. "FDI Backward Spillovers in China: What a Meta-Analysis Tells Us?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(1), pages 86-105, January.
    3. Yao Yao & Ruhul Salim, 2020. "Crowds in or crowds out? The effect of foreign direct investment on domestic investment in Chinese cities," Empirical Economics, Springer, vol. 58(5), pages 2129-2154, May.
    4. Muhammad Asif & Bahadar Shah, 2013. "Impact of Exchange Rate on Foreign Private Investment in Pakistan," Oeconomics of Knowledge, Saphira Publishing House, vol. 5(4), pages 9-16, October.
    5. Sharif, Naubahar & Huang, Can, 2012. "Innovation strategy, firm survival and relocation: The case of Hong Kong-owned manufacturing in Guangdong Province, China," Research Policy, Elsevier, vol. 41(1), pages 69-78.
    6. Wang, Jue, 2018. "Innovation and government intervention: A comparison of Singapore and Hong Kong," Research Policy, Elsevier, vol. 47(2), pages 399-412.
    7. Ha, Yoo Jung & Giroud, Axèle, 2015. "Competence-creating subsidiaries and FDI technology spillovers," International Business Review, Elsevier, vol. 24(4), pages 605-614.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Neil Foster-McGregor, 2012. "Innovation and Technology Transfer across Countries," wiiw Research Reports 380, The Vienna Institute for International Economic Studies, wiiw.
    2. Jeon, Yongbok & Park, Byung Il & Ghauri, Pervez N., 2013. "Foreign direct investment spillover effects in China: Are they different across industries with different technological levels?," China Economic Review, Elsevier, vol. 26(C), pages 105-117.
    3. Sara L. McGaughey & Pascalis Raimondos & Lisbeth Cour, 2020. "Foreign influence, control, and indirect ownership: Implications for productivity spillovers," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1391-1412, December.
    4. Sajid Anwar & Sizhong Sun, 2019. "Firm heterogeneity and FDI-related productivity spillovers: A theoretical investigation," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 28(1), pages 1-10, January.
    5. Fujimori, Azusa & Sato, Takahiro, 2015. "Productivity and technology diffusion in India: The spillover effects from foreign direct investment," Journal of Policy Modeling, Elsevier, vol. 37(4), pages 630-651.
    6. Seda Köymen Özer & Selin Sayek Böke, 2017. "The Characteristics of Domestic Firms: Materializing Productivity Spillovers from FDI," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 53(11), pages 2562-2584, November.
    7. Sara L. McGaughey & Pascalis Raimondos & Lisbeth Cour, 0. "Foreign influence, control, and indirect ownership: Implications for productivity spillovers," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-22.
    8. Lin, Ping & Liu, Zhuomin & Zhang, Yifan, 2009. "Do Chinese domestic firms benefit from FDI inflow?: Evidence of horizontal and vertical spillovers," China Economic Review, Elsevier, vol. 20(4), pages 677-691, December.
    9. Tomáš Havránek & Zuzana Iršová, 2010. "Meta-Analysis of Intra-Industry FDI Spillovers: Updated Evidence," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 60(2), pages 151-174, May.
    10. Waldkirch, Andreas & Ofosu, Andra, 2010. "Foreign Presence, Spillovers, and Productivity: Evidence from Ghana," World Development, Elsevier, vol. 38(8), pages 1114-1126, August.
    11. Filip Abraham & Jozef Konings & Veerle Slootmaekers, 2010. "FDI spillovers in the Chinese manufacturing sector," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 18(1), pages 143-182, January.
    12. Nuno Crespo & Maria Paula Fontoura & Isabel Proença, 2009. "FDI spillovers at regional level: Evidence from Portugal," Papers in Regional Science, Wiley Blackwell, vol. 88(3), pages 591-607, August.
    13. Y Wei & X Liu, 2006. "Productivity spillovers from R&D, exports and FDI in China's manufacturing sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(4), pages 544-557, July.
    14. Noor Aini Khalifah & Salmah Mohd Salleh & Radziah Adam, 2015. "FDI productivity spillovers and the technology gap in Malaysia's electrical and electronic industries," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 29(1), pages 142-160, May.
    15. Sara L. McGaughey & Pascalis Raimondos & Lisbeth La Cour, 2018. "What is a Foreign Firm? Implications for Productivity Spillovers," CESifo Working Paper Series 7109, CESifo.
    16. Marin, Anabel & Sasidharan, Subash, 2008. "The Heterogeneity of MNC' Subsidiaries and Technology Spillovers: Explaining positive and negative effects in emerging economies," MERIT Working Papers 2008-066, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    17. Chun-Hung Lin & Chia-Ming Lee & Chih-Hai Yang, 2011. "Does foreign direct investment really enhance China's regional productivity?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 20(6), pages 741-768, August.
    18. Li, Qian & Xue, Qiuzhi & Truong, Yann & Xiong, Jie, 2018. "MNCs' industrial linkages and environmental spillovers in emerging economies: The case of China," International Journal of Production Economics, Elsevier, vol. 196(C), pages 346-355.
    19. Beugelsdijk, Sjoerd & Smeets, Roger & Zwinkels, Remco, 2008. "The impact of horizontal and vertical FDI on host's country economic growth," International Business Review, Elsevier, vol. 17(4), pages 452-472, August.
    20. Klaus E Meyer & Evis Sinani, 2009. "When and where does foreign direct investment generate positive spillovers? A meta-analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(7), pages 1075-1094, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:38:y:2009:i:5:p:813-828. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nithya Sathishkumar). General contact details of provider: http://www.elsevier.com/locate/respol .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.