Productivity spillovers from FDI in China: Regional differences and threshold effects

Qi, J. H., Zheng, Y. M., Laurenceson, J and Li, H (2009) Productivity spillovers from FDI in China: Regional differences and threshold effects. China & World Economy, 17 4: 18-35. doi:10.1111/j.1749-124X.2009.01156.x


Author Qi, J. H.
Zheng, Y. M.
Laurenceson, J
Li, H
Title Productivity spillovers from FDI in China: Regional differences and threshold effects
Journal name China & World Economy   Check publisher's open access policy
ISSN 1671-2234
Publication date 2009-07-01
Sub-type Article (original research)
DOI 10.1111/j.1749-124X.2009.01156.x
Open Access Status
Volume 17
Issue 4
Start page 18
End page 35
Total pages 18
Editor Yongding Yu
Place of publication United Kingdom
Publisher Wiley-Blackwell
Language eng
Subject C1
Keyword Data Envelopment Analysis
FOREIGN DIRECT-INVESTMENT
Q-Index Code C1
Q-Index Status Confirmed Code
Additional Notes Economic theory posits numerous channels through which FDI might create positive spillovers for domestic firms. However, the results of empirical studies that have sought to document these spillovers have been mixed. One explanation for this variation is that the capacity of domestic firms to absorb spillovers might vary. In the present paper, we explore these issues in the case of China. Aside from being one of the world's leading hosts of foreign direct investment, China makes for an interesting case study because its provinces vary greatly with respect to those factors most commonly held to influence absorptive capacity, such as the initial level of technology in domestic firms. This paper begins by empirically establishing that the spillovers from foreign direct investment do indeed vary across provinces. Threshold values for various factors that influence absorptive capacity factors are then estimated and it is found that conditions in many provinces presently fall short of these values. This provides an obvious focus of attention for China's policy-makers.

Document type: Journal Article
Sub-type: Article (original research)
Collections: 2010 Higher Education Research Data Collection
School of Economics Publications
 
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Created: Thu, 03 Sep 2009, 17:48:25 EST by Mr Andrew Martlew on behalf of School of Economics