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An Empirical Study on FDI International Knowledge Spillovers and Regional Economic Development in China

Author

Listed:
  • Jiyong Chen

    (Economics and Management School, Wuhan University, Wuhan 430072, China)

  • Wei Liu

    (Economics and Management School, Wuhan University, Wuhan 430072, China)

  • Yibo Zhang

    (Economics and Management School, Wuhan University, Wuhan 430072, China)

  • Yangyi Sheng

    (Development Research Center, The People’s Government of Guangdong Province, Guangzhou 510031, China)

Abstract

This article has constructed a framework to analyze the relationship between national innovation investments, international knowledge spillover due to FDI and regional technological progress. We use the panel data sample in 1992–2006 from China’s 29 provinces (municipalities or autonomous regions) to test the impact of China’s regional R&D investments, international knowledge spillovers of FDI on its regional technological progress. It reveals that the local investments in science and technology are the most important factors to promote technological progress; for the structure and quality of China’s current FDI, the knowledge spillover effects from FDI, especially through the FDI enterprises’ manufacturing activities, are not obvious; the local gains in its technology development from FDI depends on its economic and technological level. Based on the above conclusions we give the corresponding policy recommendations for China’s FDI policy and regional economic development.

Suggested Citation

  • Jiyong Chen & Wei Liu & Yibo Zhang & Yangyi Sheng, 2010. "An Empirical Study on FDI International Knowledge Spillovers and Regional Economic Development in China," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 5(3), pages 489-508, September.
    • Handle: RePEc:fec:journl:v:5:y:2010:i:3:p:489-508
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    File URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-010-0109-x
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    Citations

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    Cited by:

    1. Duan, Yunlong & Liu, Shuling & Cheng, Hao & Chin, Tachia & Luo, Xuan, 2021. "The moderating effect of absorptive capacity on transnational knowledge spillover and the innovation quality of high-tech industries in host countries: Evidence from the Chinese manufacturing industry," International Journal of Production Economics, Elsevier, vol. 233(C).
    2. Andrew Sharpe & Blair Long, 2012. "Innovation in Canadian Natural Resource Industries: A Systems-Based Analysis of Performance, Policy and Emerging Challenges," CSLS Research Reports 2012-06, Centre for the Study of Living Standards.
    3. Fei Yu & Yanrui Wu, 2013. "Patent Citations and Knowledge Spillovers: An Analysis of Chinese Patents Registered in the US," Economics Discussion / Working Papers 13-08, The University of Western Australia, Department of Economics.
    4. Mengzhen Wang & Baekryul Choi, 2023. "An Analysis of the Impact of International R&D Spillovers and Technology Innovation in China," Sustainability, MDPI, vol. 15(3), pages 1-25, January.
    5. Md. Qamruzzaman & Salma Karim, 2020. "Nexus between Economic Volatility, Trade Openness and FDI: An Application of ARDL, NARDL and Asymmetric Causality," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(7), pages 790-807, July.

    More about this item

    Keywords

    FDI; knowledge spillover; China regional economic development;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • 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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