FDI and Spillovers in China: Non-linearity and technological absorptive capacity
2011 (English)In: Journal of Chinese Economic and Business Studies, ISSN 1476-5284, E-ISSN 1476-5292, Vol. 9, no 1, 1-22 p.Article in journal (Refereed) Published
Using a fixed effect variance decomposition model we estimate SUR models to analyse FDI spillovers from contagion and spillovers from competition on local firms in China. While the former type of spillover mainly depends on the degree of foreign presence, the latter kind is related to how foreign and local firms interact. The main conclusion is that FDI has been beneficial for the Chinese economy but that spillovers are not evenly distributed across firms and industries. Spillovers from contagion tend to exhibit an inverse U-shaped pattern with respect to the degree of foreign presence at the industry level, whereas spillovers from competition are more linear. Industries with high absorptive capacity and/or high efficiency are the ones best equipped to take advantage of spillovers from foreign-owned firms
Place, publisher, year, edition, pages
Routledge, 2011. Vol. 9, no 1, 1-22 p.
Spillovers; China; FDI; fixed effect variance decomposition
Research subject Politics, Economy and the Organization of Society; Politics, Economy and the Organization of Society
IdentifiersURN: urn:nbn:se:sh:diva-27333DOI: 10.1080/14765284.2011.542882ScopusID: 2-s2.0-79951605464OAI: oai:DiVA.org:sh-27333DiVA: diva2:809967