Where to Find Positive Productivity Spillovers from FDI in China: Disaggregated Analysis

30 Pages Posted: 30 Jun 2010

See all articles by Galina Hale

Galina Hale

University of California, Santa Cruz

Cheryl Long

Colgate University - Economics Department

Date Written: June 29, 2010

Abstract

Using panel data from Chinese Industrial Surveys of Medium-sized and Large Firms for 2000-06, we show that while there is evidence of positive technological spillovers from FDI, such spillovers are very unevenly distributed. For some industries, there are positive spillovers from FDI presence in the same industry and province, but for others spillovers are negative. There are positive spillovers from FDI presence in upstream and downstream industries, but such spillovers mostly occur in private firms. There are more spillovers from foreign capital that comes from outside the greater China area.

Keywords: FDI, Spillovers, Forward-Backward Linkages, China

JEL Classification: L33, F23, O17

Suggested Citation

Hale, Galina and Long, Cheryl Xiaoning, Where to Find Positive Productivity Spillovers from FDI in China: Disaggregated Analysis (June 29, 2010). Hong Kong Institute for Monetary and Financial Research (HKIMR) Research Paper WP No. 14/2010, Available at SSRN: https://ssrn.com/abstract=1632083 or http://dx.doi.org/10.2139/ssrn.1632083

Galina Hale (Contact Author)

University of California, Santa Cruz ( email )

1156 High St
Santa Cruz, CA 95064
United States

Cheryl Xiaoning Long

Colgate University - Economics Department ( email )

13 Oak Drive
Hamilton, NY 13346
United States

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