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Productivity Spillovers from FDI in the People's Republic of China: A Nuanced View

Author

Listed:
  • Cheryl Xiaoning Long

    (Professor, Xiamen University and Colgate University)

  • Galina Hale

    (Research Advisor, Federal Reserve Bank of San Francisco)

  • Hirotaka Miura

    (GE Japan Corporation)

Abstract

Using panel data from the Chinese Industrial Surveys of Medium-sized and Large Firms for 2000–2006, we show that the presence and the magnitude of technological spillovers from FDI in the People's Republic of China are affected by the source of FDI, by the ownership type of a firm in consideration, as well as by industrial and provincial characteristics. Private firms are more likely to benefit from horizontal spillovers than other domestic firms, but are less likely to benefit from vertical ones. Presence of state-owned firms in the industry impedes technological spillovers in a way that is consistent with diversion of linkages from private to state-owned firms. Finally, horizontal spillovers are larger in industries that are more technologically sophisticated. © 2013 Asian Development Bank and Asian Development Bank Institute.

Suggested Citation

  • Cheryl Xiaoning Long & Galina Hale & Hirotaka Miura, 2014. "Productivity Spillovers from FDI in the People's Republic of China: A Nuanced View," Asian Development Review, MIT Press, vol. 31(2), pages 77-108, September.
  • Handle: RePEc:tpr:adbadr:v:31:y:2014:i:2:p:77-108
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    References listed on IDEAS

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    Cited by:

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    2. Bishwanath Goldar & Karishma Banga, 2018. "Country Origin of Foreign Direct Investment in Indi an Manufacturing and Its Impact on Productivity of Domestic Firms," Working Papers id:12730, eSocialSciences.
    3. Arkadiusz Michał Kowalski, 2021. "Dynamics and Factors of Innovation Gap Between the European Union and China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(4), pages 1966-1981, December.

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    More about this item

    Keywords

    FDI; spillover; diversion; linkages; technology; domestic firms; state-owned firms;
    All these keywords.

    JEL classification:

    • F00 - International Economics - - General - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other

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