Testing technology spillovers of FDI: a stochastic frontier approach
Sun, Sizhong (2009) Testing technology spillovers of FDI: a stochastic frontier approach. The Empirical Economics Letters, 8 (9). .
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This article examines the technology spillover of foreign direct investment (FDI) in Gansu China, using the stochastic frontier approach. Following a general to specific estimation strategy, we find that FDI does positively affect domestic firms’ technical efficiency if it is measured in terms of FDI invested firms’ output/employment share in the industry. In addition, firms’ R&D expense appears to play a positive role in the scale of the spillover, which however shall be interpreted with caution as it is not robust to hypothesis tests.
|Item Type:||Article (Refereed Research - C1)|
|Keywords:||technology spillovers; FDI; stochastic frontier model; China|
|Date Deposited:||24 Feb 2010 05:48|
|FoR Codes:||14 ECONOMICS > 1402 Applied Economics > 140209 Industry Economics and Industrial Organisation @ 100%|
|SEO Codes:||91 ECONOMIC FRAMEWORK > 9102 Microeconomics > 910210 Production @ 100%|