Heterogeneity of FDI export spillovers and its policy implications: the experience of China

Sun, Sizhong (2010) Heterogeneity of FDI export spillovers and its policy implications: the experience of China. Asian Economic Journal, 24 (4). pp. 289-303.

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Abstract

This paper explores the magnitude and heterogeneity of foreign direct investment (FDI) export spillovers in China. Using a Heckman sample selection model estimated over a rich firm-level dataset in China’s manufacturing sector from 2000 to 2003, we find that FDI exerts significant impacts on the exporting behavior of domestic firms, and such impacts are heterogeneous in that some firms receive positive impacts while others receive negative impacts. The heterogeneity of FDI spillovers has significant policy implications as it indicates that government policies need to be more specific and targeted in order for the benefits of FDI to be reaped.

Item ID: 15388
Item Type: Article (Refereed Research - C1)
Keywords: China, export spillovers, foreign direct investment, heterogeneity
ISSN: 1467-8381
Date Deposited: 18 Feb 2011 03:33
FoR Codes: 14 ECONOMICS > 1402 Applied Economics > 140210 International Economics and International Finance @ 50%
14 ECONOMICS > 1402 Applied Economics > 140209 Industry Economics and Industrial Organisation @ 30%
14 ECONOMICS > 1402 Applied Economics > 140202 Economic Development and Growth @ 20%
SEO Codes: 91 ECONOMIC FRAMEWORK > 9103 International Trade > 910399 International Trade not elsewhere classified @ 60%
91 ECONOMIC FRAMEWORK > 9102 Microeconomics > 910203 Industrial Organisations @ 40%
Citation Count from Web of Science Web of Science 4
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