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Why has China grown so fast? The role of international technology transfer

  • Linda Yueh
  • Linda Yueh
  • John Van Reenen

Chinese economic growth has been spectacular in the last 30 years.� We investigate the role of International Joint Ventures with Technology Transfer agreements, an understudied area.� Technology transfer is the traditional mechanism for developing countries to "catch up" and has been a key component of Chinese economic policy.� We collect original survey data on Chinese firms and their joint ventures and match this to administrative data on firm performance.� To identify the causal effect of joint ventures we use time-varying and province-specific policies at the time when a firm was born.� International joint ventures in general and I have large effects on productivity especially when combined with a technology transfer component.� We estimate that without International joint ventures China's growth would have been about one percentage point lower per annum over the last three decades.

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File URL: http://www.economics.ox.ac.uk/materials/papers/5634/paper592.pdf
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Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 592.

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Date of creation: 01 Jan 2012
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Handle: RePEc:oxf:wpaper:592
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Web page: http://www.economics.ox.ac.uk/
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  1. Yeaple, Stephen & Helpman, Elhanan & Melitz, Marc, 2004. "Export versus FDI with Heterogeneous Firms," Scholarly Articles 3229098, Harvard University Department of Economics.
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  8. 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.
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