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Technological spillovers and industrial growth in Chinese regions

Author

Listed:
  • Wang L.
  • Meijers H.H.M.
  • Szirmai A.

    (UNU-MERIT)

Abstract

This paper focuses on the role of interregional technology spillovers in the process of industrial growth in Chinese regions in the period 1990-2005. Inflows of FDIincreased rapidly from 1990 till 1998, slowing down thereafter. Domestic RDinvestment accelerated after 1998. Regional industrial growth benefits from bothinterregional RD spillovers and after 1998 from international FDI spillovers.However, in contrast to RD spillovers, FDI spillovers contribute conditionally,mainly in areas where local RD stocks are high enough. Interestingly, indirectinterregional FDI spillover effects are negative. Foreign investment in one regionattracts resources from regions with less FDI, thus having a negative influence ongrowth of industrial output in neighbouring regions.

Suggested Citation

  • Wang L. & Meijers H.H.M. & Szirmai A., 2013. "Technological spillovers and industrial growth in Chinese regions," MERIT Working Papers 044, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2013044
    as

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    File URL: https://www.merit.unu.edu/publications/wppdf/2013/wp2013-044.pdf
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    References listed on IDEAS

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    1. Balasubramanyam, V N & Salisu, M & Sapsford, David, 1996. "Foreign Direct Investment and Growth in EP and IS Countries," Economic Journal, Royal Economic Society, vol. 106(434), pages 92-105, January.
    2. Jeffrey I. Bernstein & M. Ishaq Nadiri, 1989. "Research and Development and Intra-industry Spillovers: An Empirical Application of Dynamic Duality," Review of Economic Studies, Oxford University Press, vol. 56(2), pages 249-267.
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    5. Branstetter, Lee G. & Feenstra, Robert C., 2002. "Trade and foreign direct investment in China: a political economy approach," Journal of International Economics, Elsevier, vol. 58(2), pages 335-358, December.
    6. Francesco Aiello & Paola Cardamone, 2005. "R&D spillovers and productivity growth: evidence from Italian manufacturing microdata," Applied Economics Letters, Taylor & Francis Journals, vol. 12(10), pages 625-631.
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    Cited by:

    1. Lili Wang, 2016. "The structure and comparative advantages of China’s scientific research: quantitative and qualitative perspectives," Scientometrics, Springer;Akadémiai Kiadó, vol. 106(1), pages 435-452, January.
    2. Chunlai Chen, 2015. "Do Inland Provinces Benefit from Coastal Foreign Direct Investment in China?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 23(3), pages 22-41, May.

    More about this item

    Keywords

    Economic Growth of Open Economies; Industrialization; Manufacturing and Service Industries; Choice of Technology; Technological Change; Diffusion Processes; Regional Economic Activity; Size and Spatial Distributions of Regional Economic Activity;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • 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
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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