FDI Spillover Effects in China’s Manufacturing Sector: New Evidence from Forward and Backward Linkages

Chengchun Li; Sailesh Tanna

doi:10.1007/978-3-319-70055-7_15

FDI Spillover Effects in China’s Manufacturing Sector: New Evidence from Forward and Backward Linkages

Chengchun Li, Sailesh Tanna

School of Economics, Finance and Accounting

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

9 Citations (Scopus)

Abstract

This paper assesses the spillover effects of inward foreign direct investment (FDI) on firm-level productivity growth in China’s manufacturing sector over the period 2006-2009. We use a detailed industrial classification of data to characterise both intra-industry and inter-industry linkages, in contrast to most previous studies for developing countries. Our findings suggest that there is a negative short-term effect and a positive long-run effect from FDI at both linkage levels. Among the inter-industry linkages, in line with previous studies, the backward linkage is an important channel for domestic firms to obtain technology spillovers in the long-run. However, our results also indicate that forward linkages are equally important, as we find a strongly positive impact of this linkage on productivity growth of domestic manufacturing firms in China.

Original language	English
Title of host publication	Advances in Panel Data Analysis in Applied Economic Research
Subtitle of host publication	2017 International Conference on Applied Economics (ICOAE)
Editors	Nicholas Tsounis, Aspasia Vlachvei
Place of Publication	Switzerland
Publisher	Springer
Chapter	15
Pages	203-222
Number of pages	20
ISBN (Electronic)	978-3-319-70055-7
ISBN (Print)	978-3-319-70054-0
DOIs	https://doi.org/10.1007/978-3-319-70055-7_15
Publication status	Published - 18 Apr 2018
Event	International Conference on Applied Economics - Coventry University Technology Park, Coventry, United Kingdom Duration: 6 Jul 2017 → 8 Jul 2017 http://i-coae.com/

Publication series

Name	Springer Series in Business and Economics

Conference

Conference	International Conference on Applied Economics
Abbreviated title	ICOAE
Country/Territory	United Kingdom
City	Coventry
Period	6/07/17 → 8/07/17
Internet address	http://i-coae.com/

Keywords

Foreign direct investment
Technology spillovers
Productivity growth

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1007/978-3-319-70055-7_15

Cite this

Li, C., & Tanna, S. (2018). FDI Spillover Effects in China’s Manufacturing Sector: New Evidence from Forward and Backward Linkages. In N. Tsounis, & A. Vlachvei (Eds.), Advances in Panel Data Analysis in Applied Economic Research: 2017 International Conference on Applied Economics (ICOAE) (pp. 203-222). (Springer Series in Business and Economics). Springer. https://doi.org/10.1007/978-3-319-70055-7_15

FDI Spillover Effects in China’s Manufacturing Sector : New Evidence from Forward and Backward Linkages. / Li, Chengchun; Tanna, Sailesh.

Advances in Panel Data Analysis in Applied Economic Research: 2017 International Conference on Applied Economics (ICOAE). ed. / Nicholas Tsounis; Aspasia Vlachvei. Switzerland : Springer, 2018. p. 203-222 (Springer Series in Business and Economics).

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

Li, C & Tanna, S 2018, FDI Spillover Effects in China’s Manufacturing Sector: New Evidence from Forward and Backward Linkages. in N Tsounis & A Vlachvei (eds), Advances in Panel Data Analysis in Applied Economic Research: 2017 International Conference on Applied Economics (ICOAE). Springer Series in Business and Economics, Springer, Switzerland, pp. 203-222, International Conference on Applied Economics, Coventry, United Kingdom, 6/07/17. https://doi.org/10.1007/978-3-319-70055-7_15

Li C, Tanna S. FDI Spillover Effects in China’s Manufacturing Sector: New Evidence from Forward and Backward Linkages. In Tsounis N, Vlachvei A, editors, Advances in Panel Data Analysis in Applied Economic Research: 2017 International Conference on Applied Economics (ICOAE). Switzerland: Springer. 2018. p. 203-222. (Springer Series in Business and Economics). https://doi.org/10.1007/978-3-319-70055-7_15

Li, Chengchun ; Tanna, Sailesh. / FDI Spillover Effects in China’s Manufacturing Sector : New Evidence from Forward and Backward Linkages. Advances in Panel Data Analysis in Applied Economic Research: 2017 International Conference on Applied Economics (ICOAE). editor / Nicholas Tsounis ; Aspasia Vlachvei. Switzerland : Springer, 2018. pp. 203-222 (Springer Series in Business and Economics).

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abstract = "This paper assesses the spillover effects of inward foreign direct investment (FDI) on firm-level productivity growth in China{\textquoteright}s manufacturing sector over the period 2006-2009. We use a detailed industrial classification of data to characterise both intra-industry and inter-industry linkages, in contrast to most previous studies for developing countries. Our findings suggest that there is a negative short-term effect and a positive long-run effect from FDI at both linkage levels. Among the inter-industry linkages, in line with previous studies, the backward linkage is an important channel for domestic firms to obtain technology spillovers in the long-run. However, our results also indicate that forward linkages are equally important, as we find a strongly positive impact of this linkage on productivity growth of domestic manufacturing firms in China. ",

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AB - This paper assesses the spillover effects of inward foreign direct investment (FDI) on firm-level productivity growth in China’s manufacturing sector over the period 2006-2009. We use a detailed industrial classification of data to characterise both intra-industry and inter-industry linkages, in contrast to most previous studies for developing countries. Our findings suggest that there is a negative short-term effect and a positive long-run effect from FDI at both linkage levels. Among the inter-industry linkages, in line with previous studies, the backward linkage is an important channel for domestic firms to obtain technology spillovers in the long-run. However, our results also indicate that forward linkages are equally important, as we find a strongly positive impact of this linkage on productivity growth of domestic manufacturing firms in China.

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FDI Spillover Effects in China’s Manufacturing Sector: New Evidence from Forward and Backward Linkages

Abstract

Publication series

Conference

Keywords

UN SDGs

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