The impact of FDI spillover effects on total factor productivity in the Chinese electronic industry: a panel data analysis

Title: The impact of FDI spillover effects on total factor productivity in the Chinese electronic industry: a panel data analysis
Creator: Liu, William Sheng; Agbola, Frank Wogbe; Dzator, Janet Ama
Relation: Journal of the Asia Pacific Economy Vol. 21, Issue 2, p. 217-234
Publisher Link: http://dx.doi.org/10.1080/13547860.2015.1137473
Publisher: Routledge
Resource Type: journal article
Date: 2016
Description: This paper empirically investigates the impact of inward foreign direct investment (FDI) on total factor productivity (TFP) growth in a developing country, China. Utilising an endogenous growth theoretic framework, we estimate a model using 1328 firm-level data and spanning the period 2003-2008. We find that the productivity gap constrains the impact of FDI on TFP, while foreign equity participation enhances technological transfer from foreign partners thus resulting in increased TFP in the Chinese electronic industry (CEI). Our findings demonstrate the need for greater investment in the human capital skill base, adopting flexible labour regulatory policies and encouraging investment in R&D as it enhances TFP in the CEI.
Subject: foreign direct investment; total factor productivity; spillover channels; China
Identifier: http://hdl.handle.net/1959.13/1328535
Identifier: uon:25931
Identifier: ISSN:1469-9648
Language: eng
Reviewed

		Thumbnail	File	Description	Size	Format