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FDI and the Export Performance of Chinese Indigenous Firms: a Regional Approach

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  • Ping Zheng
  • Pamela Siler
  • Gianluigi Giorgioni

Abstract

The primary purpose of this paper is to examine the impact of Foreign Direct Investment (FDI) on the export performance of Chinese indigenous firms. A panel data analysis is employed using data across 29 provinces over the 1985-99 period. Owing to the exceptionally uneven distribution of FDI, the analysis compares the impact of FDI on all provincial exports and exports of indigenous firms over the three macro-regions of China. While the findings of the empirical analysis should be viewed with caution, they do show that FDI has less influence on the export performance of indigenous firms than on all firms (foreign and indigenous). The findings imply that linkages between the foreign and domestic sectors need to be improved if FDI is to be a vehicle for improving the competitiveness of domestic firms. Alternatively, policies may have to be directed towards the indigenous firms themselves to enhance their export performance.

Suggested Citation

  • Ping Zheng & Pamela Siler & Gianluigi Giorgioni, 2004. "FDI and the Export Performance of Chinese Indigenous Firms: a Regional Approach," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 2(1), pages 55-71.
    • Handle: RePEc:taf:jocebs:v:2:y:2004:i:1:p:55-71
    DOI: 10.1080/14765280310001631381
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    Citations

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    Cited by:

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    2. Duanmu, Jing-Lin & Fai, Felicia M., 2007. "A processual analysis of knowledge transfer: From foreign MNEs to Chinese suppliers," International Business Review, Elsevier, vol. 16(4), pages 449-473, August.
    3. Y Wei & X Liu, 2006. "Productivity spillovers from R&D, exports and FDI in China's manufacturing sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(4), pages 544-557, July.
    4. Alyson Ma, 2006. "Export Spillovers to Chinese Firms: Evidence from Provincial Data," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 4(2), pages 127-149.
    5. Oana Cristina Popovici & Adrian Cantemir Calin, 2017. "The Role of Foreign and Domestic Investment in Promoting Exports and Imports. A Dynamic Panel Approach," Working papers Globalization - Economic, Social and Moral Implications, April 2017 16, Research Association for Interdisciplinary Studies.
    6. Ping Zheng, 2011. "The determinants of disparities in inward FDI flows to the three macro-regions of China," Post-Communist Economies, Taylor & Francis Journals, vol. 23(2), pages 257-270.
    7. Ping Zheng, 2013. "The Variation in Indian Inward FDI Patterns," Management International Review, Springer, vol. 53(6), pages 819-839, December.
    8. Zheng, Lucy & Batuo, Michael Enowbi & Shepherd, David, 2017. "The Impact of Regional and Institutional Factors on Labor Productive Performance—Evidence from the Township and Village Enterprise Sector in China," World Development, Elsevier, vol. 96(C), pages 591-598.
    9. Oana Cristina POPOVICI, 2018. "The Impact of FDI on EU Export Performance in Manufacturing and Services. A Dynamic Panel Data Approach," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 108-123, December.
    10. Jayanthakumaran, Kankesu & Lee, Shao-Wei, 2007. "An initial push for successful transition from import substitution to export-orientation in Taiwan and China: The FDI-led hypothesis," Economics Working Papers wp07-03, School of Economics, University of Wollongong, NSW, Australia.
    11. Chunlai Chen, 2011. "Foreign Direct Investment in China," Books, Edward Elgar Publishing, number 14100.
    12. Xu, WeiGuo & Hu, DaiPing & Lei, AiZhong & Shen, HuiZhang, 2008. "FDI chaos and control in China," Research in International Business and Finance, Elsevier, vol. 22(1), pages 17-28, January.

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    More about this item

    Keywords

    Foreign direct investment (FDI); China; export performance; indigenous firms; international competitiveness; panel data; JEL classifications: C23; F14; F23; O53; P33;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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