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Technological spillovers and industrial growth in Chinese regions

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

    (UNU-MERIT)

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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File URL: http://pub.maastrichtuniversity.nl/7f229bef-692c-43c8-a370-faf463d9afe2
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Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 044.

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Date of creation: 2013
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Handle: RePEc:unm:unumer:2013044
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  2. 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.
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  6. 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.
  7. Kam Wing Chan, 2010. "The Household Registration System and Migrant Labor in China: Notes on a Debate," Population and Development Review, The Population Council, Inc., vol. 36(2), pages 357-364.
  8. Buckley, Peter J. & Wang, Chengqi & Clegg, Jeremy, 2007. "The impact of foreign ownership, local ownership and industry characteristics on spillover benefits from foreign direct investment in China," International Business Review, Elsevier, vol. 16(2), pages 142-158, April.
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  10. BAUMONT, Catherine & ERTUR, Cem & LE GALLO, Julie, 2000. "Geographic Spillover and Growth. A Spatial Econometric Analysis for European Regions," LATEC - Document de travail - Economie (1991-2003) 2000-07, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
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