IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/331758.html
   My bibliography  Save this paper

Productivity Spillover of Foreign Direct Investment: A Computable General Equilibrium Model of China

Author

Listed:
  • Deng, Ziliang
  • Falvey, Rod
  • Blake, Adam

Abstract

A computable general equilibrium (CGE) model is constructed to capture the endogenous productivity spillover from foreign-invested firms to domestic firms in China. This paper summarizes the main results we have found so far. There are three contributions we have made to the knowledge. First and foremost, the endogenous productivity increase in manufacturing sectors caused by FDI spillover has been successfully introduced into a CGE model. The productivity spillover effects in both perfectly competitive and imperfectly competitive markets are also compared. This technique can be readily applied to a global dynamic CGE model embodying trade-FDI-productivity spillover linkages. Second, we have estimated and compared the importance of four spillover channels in econometric analyses and the CGE model. Third, we have made a tentative assessment of Chinese FDI policies characterised by swapping market access for technology with the CGE prototype model. There are various directions worth future research, e.g. to estimate productivity spillover parameters by industries with firm-level data, to extend the research to include spillovers in services sectors, and to construct a global dynamic model capturing capital accumulation and trade-FDI-productivity interactions.

Suggested Citation

  • Deng, Ziliang & Falvey, Rod & Blake, Adam, 2008. "Productivity Spillover of Foreign Direct Investment: A Computable General Equilibrium Model of China," Conference papers 331758, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331758
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/331758/files/3752.pdf
    Download Restriction: no
    ---><---

    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:ags:pugtwp:331758. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.