- Productivity Spillovers from FDI
in the People’s Republic of China:
A Nuanced View
- Cheryl Xiaoning Long, Galina Hale, Hirotaka Miura
- Asian Development Review vol. 31, no. 2, pp. 77–108
- 2291 20160221 () Views:24487
- Using panel data from the Chinese Industrial Surveys of Medium-sized and
Large Firms for 2000–2006, we show that the presence and the magnitude of
technological spillovers from FDI in the People’s Republic of China are affected
by the source of FDI, by the ownership type of a firm in consideration, as well
as by industrial and provincial characteristics. Private firms are more likely to
benefit from horizontal spillovers than other domestic firms, but are less likely to
benefit from vertical ones. Presence of state-owned firms in the industry impedes
technological spillovers in a way that is consistent with diversion of linkages
from private to state-owned firms. Finally, horizontal spillovers are larger in
industries that are more technologically sophisticated.
- JEL-Codes: L33, F23, O17
- Keywords: FDI, spillovers, forward-backward linkages, People’s Republic of China
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