FDI spillovers in the chinese manufacturing sector: evidence of firm heterogeneity
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Date
2007-11
Authors
Abraham, Filip
Konings, Jozef
Slootmaekers, Veerle
Journal Title
Journal ISSN
Volume Title
Publisher
Centre for Economic Policy Research
Abstract
We use a new longitudinal data set of more than 15,000 Chinese
manufacturing plants to show that the direct and indirect effects of foreign
direct investment on measured firm level productivity depend on a number of
firm specific features and institutional factors. We find that domestic firms
engaged in a joint-venture with a foreign partner are on average more
productive, as well as exporting plants and plants located in special economic
zones. In addition, domestic firms benefit from horizontal spillovers from
foreign firms on average. However, these spillovers depend on the structure
and origin of ownership as well as on specific characteristics of the special
economic zones. First, spillovers are less likely to occur from fully foreign
owned firms than from joint-ventures. Second, spillovers from foreign direct
investment originating from oversees Chinese (Hong Kong, Macau and
Taiwan) are stronger than from the rest of the world. Third, spillovers are
higher in the special economic zone aimed at attracting foreign capital to
fasten the development of China’s own high tech industries.
Description
Keywords
China, firm heterogeneity, productivity and spillovers, Research Subject Categories::SOCIAL SCIENCES::Business and economics
Citation
Abraham Filip, Konings Jozef, Slootmaekers Veerle, 2007, Centre for Economic Policy Research; FDI spillovers in the chinese manufacturing sector: evidence of firm heterogeneity. http://nur.nu.edu.kz/handle/123456789/1888