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Knowledge Spillovers from FDI in the People's Republic of China: The Role of Educated Labor in Multinational Enterprises

Author

Listed:
  • Todo, Yasuyuki

    (Asian Development Bank Institute)

  • Zhang, Weiying

    (Asian Development Bank Institute)

  • Zhou, Li-An

    (Asian Development Bank Institute)

Abstract

This paper employs a firm-level panel data set for a high-tech cluster in the People's Republic of China to examine knowledge spillovers from multinational enterprises (MNEs) to domestic firms, focusing on the role of MNEs' employment of educated workers. We find that knowledge within MNEs spills over to domestic firms in the same industry through MNEs' employment of workers with graduate-level or overseas education. We also find that Japanese MNEs contribute less to knowledge spillovers than United States MNEs. This is most likely due to the fact that Japanese MNEs in the People's Republic of China do not employ as much educated labor.

Suggested Citation

  • Todo, Yasuyuki & Zhang, Weiying & Zhou, Li-An, 2009. "Knowledge Spillovers from FDI in the People's Republic of China: The Role of Educated Labor in Multinational Enterprises," ADBI Working Papers 174, Asian Development Bank Institute.
  • Handle: RePEc:ris:adbiwp:0174
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    Citations

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    Cited by:

    1. Bingtao Qin & Yulu Gai & Liming Ge & Pengbo Sun & Yongwei Yu & Yi Zheng, 2022. "FDI, Technology Spillovers, and Green Innovation: Theoretical Analysis and Evidence from China," Energies, MDPI, vol. 15(20), pages 1-25, October.
    2. Nguyen-Huu, Thanh Tam & Nguyen-Khac, Minh, 2017. "Impacts of Export-platform FDI on the production of upstream industries - do third country size, trade agreements and local content requirement matter? Evidence from the Vietnamese supporting industri," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 11, pages 1-33.
    3. Thanh tam Nguyen Huu, 2016. "Determinant factors of TFP convergence: Evidence from Vietnamese manufacturing firms from 2000-2012," Economics Bulletin, AccessEcon, vol. 36(3), pages 1569-1579.
    4. Fariha Kamal, 2014. "Does Firm Ownership Affect Spillover Opportunities? Evidence From Chinese Manufacturing," Journal of Regional Science, Wiley Blackwell, vol. 54(1), pages 137-154, January.
    5. Spyridon Boikos & Mehmet Pinar & Thanasis Stengos, 2023. "Bribery, on-the-job training, and firm performance," Small Business Economics, Springer, vol. 60(1), pages 37-58, January.
    6. Salike, Nimesh, 2016. "Role of human capital on regional distribution of FDI in China: New evidences," China Economic Review, Elsevier, vol. 37(C), pages 66-84.
    7. Yingqi Wei & Xiaohui Liu & Jiangyong Lu & Jingjing Yang, 2017. "Chinese Migrants and their Impact on Homeland Development," The World Economy, Wiley Blackwell, vol. 40(11), pages 2354-2377, November.
    8. Ziliang Deng & Honglin Guo & Guilan Kong, 2011. "Efficiency Spillovers of Foreign Direct Investment in the Chinese Banking System," Global Economic Review, Taylor & Francis Journals, vol. 40(2), pages 179-191.
    9. 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.
    10. International Monetary Fund, 2016. "Tunisia: Selected Issues," IMF Staff Country Reports 2016/047, International Monetary Fund.
    11. William Sheng Liu & Frank Wogbe Agbola & Janet Ama Dzator, 2016. "The impact of FDI spillover effects on total factor productivity in the Chinese electronic industry: a panel data analysis," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 21(2), pages 217-234, April.
    12. Nguyen-Huu, Thanh Tam & Nguyen-Khac, Minh, 2017. "Impacts of export-platform FDI on backward linkages - Do third country size, trade agreements and heterogeneity of firms matter? Evidence from the Vietnamese supporting industries," Economics Discussion Papers 2017-21, Kiel Institute for the World Economy (IfW Kiel).

    More about this item

    Keywords

    knowledge spillovers; foreign direct investment; educated labor; the peoples republic of china;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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