Evidence of Firm Heterogeneity: FDI Spillovers in the Chinese Manufacturing Sector
KU Leuven - Department of Economics
Catholic University of Leuven (KUL) - LICOS - Centrum voor Transitie-economie; Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA)
Economics of Transition, Vol. 18, Issue 1, pp. 143-182, January 2010
This paper uses a new longitudinal dataset of more than 15,000 manufacturing firms to analyse the heterogeneous responses of firms to foreign direct investment in China. Domestic firms operating in sectors where foreign firms are also active have higher total factor productivity. However, the magnitude of such horizontal spillovers depends on the structure and origin of foreign ownership, the export status of firms and the characteristics of the special economic zones firms are operating in.
Number of Pages in PDF File: 40Accepted Paper Series
Date posted: December 1, 2009
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