IDEAS home Printed from https://ideas.repec.org/a/mes/chinec/v44y2011i2p25-42.html
   My bibliography  Save this article

Foreign Direct Investment and Technology Spillovers in China's Manufacturing Sector

Author

Listed:
  • Sizhong Sun

Abstract

This article explores the technology spillovers of foreign direct investment (FDI) in China's manufacturing sector in 2003. Using a simultaneous equation model estimated over a comprehensive firm-level data set, we find that foreign direct investment in China generates significant and positive technology spillovers to domestic firms, with a 1 percent increase in foreign presence promoting labor productivity of domestic firms by more than 5 percent. The substantial positive spillovers not only justify, to some extent, China's FDI policy setting, but also indicate that China is likely to continue to benefit from attracting more FDI inflow in the future.

Suggested Citation

  • Sizhong Sun, 2011. "Foreign Direct Investment and Technology Spillovers in China's Manufacturing Sector," Chinese Economy, Taylor & Francis Journals, vol. 44(2), pages 25-42, March.
    • Handle: RePEc:mes:chinec:v:44:y:2011:i:2:p:25-42
    as

    Download full text from publisher

    File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=K31N288401W1807T
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sizhong Sun, 2023. "Firm heterogeneity, worker training and labor productivity: the role of endogenous self-selection," Journal of Productivity Analysis, Springer, vol. 59(2), pages 121-133, April.
    2. Sun, Sizhong & Anwar, Sajid, 2017. "Foreign direct investment and the performance of indigenous firms in China’s textile industry," The Quarterly Review of Economics and Finance, Elsevier, vol. 65(C), pages 107-113.
    3. Minbaeva, Dana & Park, Chansoo & Vertinsky, Ilan & Cho, Yeon Sung, 2018. "Disseminative capacity and knowledge acquisition from foreign partners in international joint ventures," Journal of World Business, Elsevier, vol. 53(5), pages 712-724.
    4. Zainab Asif & Radhika Lahiri, 2021. "Dimensions of human capital and technological diffusion," Empirical Economics, Springer, vol. 60(2), pages 941-967, February.
    5. Nguyen, Dao Thi Hong & Sun, Sizhong & Anwar, Sajid, 2017. "A long-run and short-run analysis of the macroeconomic interrelationships in Vietnam," Economic Analysis and Policy, Elsevier, vol. 54(C), pages 15-25.
    6. Sun, Sizhong & Anwar, Sajid, 2022. "Estimation of product quality in China's food processing and manufacturing industries," Economic Modelling, Elsevier, vol. 107(C).
    7. Sonja Opper & Fredrik N. G. Andersson, 2019. "Are entrepreneurial cultures stable over time? Historical evidence from China," Asia Pacific Journal of Management, Springer, vol. 36(4), pages 1165-1192, December.
    8. Turnbull, Christopher & Sun, Sizhong & Anwar, Sajid, 2016. "Trade liberalisation, inward FDI and productivity within Australia’s manufacturing sector," Economic Analysis and Policy, Elsevier, vol. 50(C), pages 41-51.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:chinec:v:44:y:2011:i:2:p:25-42. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MCES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.