FDI and market entry/exit: evidence from China

Anwar, Sajid, and Sun, Sizhong (2012) FDI and market entry/exit: evidence from China. Journal of Asian Economics , 23 (5). pp. 487-498.

[img] PDF (Published Version) - Published Version
Restricted to Repository staff only

View at Publisher Website: http://dx.doi.org/10.1016/j.asieco.2012....
 
12
4


Abstract

This paper considers the impact of FDI and FDI-related spillovers on the entry and exit rates of domestic firms in mainland China's manufacturing sector. Since we suspect that aggregate results obscure differing effects based on the source of the FDI, we disaggregate FDI into that originating from Hong Kong, Macau and Taiwan (HMT) area and the rest of the world. The empirical analysis, based on 4-digit industry level panel data over the period 2003–2007, reveals that FDI originating from the rest of the world has made a significant contribution to the entry rate of domestic firms in China and the spillover effect arising from backward linkages is also positive and significant. However, FDI originating from HMT area has not encouraged domestic entry, whilst it has contributed to an increase in the exit rate of domestic firms.

Item ID: 25129
Item Type: Article (Research - C1)
ISSN: 1873-7927
Keywords: FDI; FDI-linked spillovers; entry and exit of firms; China
Date Deposited: 24 Feb 2013 22:54
FoR Codes: 14 ECONOMICS > 1402 Applied Economics > 140209 Industry Economics and Industrial Organisation @ 40%
14 ECONOMICS > 1402 Applied Economics > 140202 Economic Development and Growth @ 60%
SEO Codes: 91 ECONOMIC FRAMEWORK > 9102 Microeconomics > 910210 Production @ 100%
Downloads: Total: 4
More Statistics

Actions (Repository Staff Only)

Item Control Page Item Control Page