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The logic of spillover interception: The impact of global supply chains in China

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  • Hatani, Faith

Abstract

Drawing on the global value chain analysis and institutional views, this paper explains the mechanism of "spillover interception," a structural obstacle to technology spillovers in emerging economies. Contrary to the widely accepted perception that FDI is expected to generate spillover of intermediate technology in particular, the findings indicate that excess inward FDI could structurally inhibit technology spillovers even at the lower tiers of the supply hierarchy within the emerging economy context. Based on an exploratory case study of the Chinese automotive industry, the paper analyses the net impact of global supply chains, and calls for a more comprehensive policy coordination.

Suggested Citation

  • Hatani, Faith, 2009. "The logic of spillover interception: The impact of global supply chains in China," Journal of World Business, Elsevier, vol. 44(2), pages 158-166, April.
  • Handle: RePEc:eee:worbus:v:44:y:2009:i:2:p:158-166
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    Cited by:

    1. Tian Wu & Mengbo Zhang & Xunmin Ou, 2014. "Analysis of Future Vehicle Energy Demand in China Based on a Gompertz Function Method and Computable General Equilibrium Model," Energies, MDPI, Open Access Journal, vol. 7(11), pages 1-29, November.
    2. Wang, Chengqi & Deng, Ziliang & Kafouros, Mario I. & Chen, Yan, 2012. "Reconceptualizing the spillover effects of foreign direct investment: A process-dependent approach," International Business Review, Elsevier, vol. 21(3), pages 452-464.
    3. repec:kap:jinten:v:15:y:2017:i:4:d:10.1007_s10843-017-0205-4 is not listed on IDEAS
    4. zhibo Tan & Xiaobo Zhang, 2016. "Does Female Labor Scarcity Encourage Innovation? Evidence from China’s Gender Imbalance," Working Papers id:11039, eSocialSciences.
    5. repec:bpj:nglost:v:11:y:2017:i:1:p:29-44:n:6 is not listed on IDEAS
    6. Tattara, Giuseppe, 2012. "From competitive advantage to dynamic capabilities: small and medium-sized multinationals in Asia," MPRA Paper 39364, University Library of Munich, Germany.
    7. Conti, Giuliano & Lo Turco, Alessia & Maggioni, Daniela, 2014. "Spillovers through backward linkages and the export performance of business services. Evidence from a sample of Italian firms," International Business Review, Elsevier, vol. 23(3), pages 552-565.
    8. Petr Pavlínek & Pavla Žížalová, 2016. "Linkages and spillovers in global production networks: firm-level analysis of the Czech automotive industry," Journal of Economic Geography, Oxford University Press, vol. 16(2), pages 331-363.
    9. Hatani, Faith & McGaughey, Sara L., 2013. "Network cohesion in global expansion: An evolutionary view," Journal of World Business, Elsevier, vol. 48(4), pages 455-465.

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