Work

How does the productivity of foreign direct investment spill over to local firms in Chinese manufacturing?

Year: 2009

Type: article

Abstract: We use a firm-level dataset for Chinese manufacturing, to estimate productivity spillovers from foreign direct investment (FDI) to local firms. The spillover channels considered include inter-firm labour turnover/mobility; vertical input-output linkages; exporting externalities; and horizontal effects. The roles of these channels are dependent on various factors including export propensity, R&D expenditure per capita, employee training, and ownership structure. We find that export of MNEs is the most prominent spillover channel. Labour turnover and horizontal demonstration and competition bring positive spillovers to SOEs but not to local private firms. Vertical linkages are not found to be significant.

Source: Journal of Chinese Economic and Business Studies

DOI: 10.1080/14765280902847676

Authors: Adam Blake, Ziliang Deng, Rod Falvey

Institutions: Bournemouth University, University of Nottingham, Keele University, Renmin University of China

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: green

Funder: Leverhulme Trust