Technological spillovers and industrial growth in Chinese regions
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.
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