Title: Foreign direct investment and productivity spillovers in the Chinese manufacturing sector
Abstract: In this paper a simple simultaneous model is constructed to examine whether there are productivity spillovers from both the presence of foreign direct investment (FDI) and competition between local and foreign firms. The model is tested on the data from China's latest industrial census in 1995. The results indicate that the extent to which spillovers occur varies with different types of ownership of local firms and of FDI. While collective- and private-owned enterprises benefit from demonstration and contagion effects from foreign presence, productivity gains of state-owned enterprises largely come from competition with foreign firms. Productivities of local and foreign firms are jointly determined. Evidence also suggests that market-oriented FDI tends to generate spillovers mainly via competition with local firms.
Publication Year: 2001
Publication Date: 2001-12-01
Language: en
Type: article
Indexed In: ['crossref']
Access and Citation
Cited By Count: 163
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot