Where to Find Positive Productivity Spillovers from FDI in China: Disaggregated Analysis
30 Pages Posted: 30 Jun 2010 Last revised: 7 Sep 2022
Date Written: June 29, 2010
Abstract
This working paper was written by Galina Hale (Federal Reserve Bank of San Francisco), Cheryl Long (Colgate University) and Hirotaka Miura (Federal Reserve Bank of San Francisco).
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: Suggested Citation
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