Export spillovers of FDI on China's domestic firms

Date

2013-11

Authors

Chen, Chunlai
Sheng, Yu
Findlay, Christopher

Journal Title

Journal ISSN

Volume Title

Publisher

Wiley

Abstract

This paper examines the horizontal and vertical export spillovers of foreign direct investment (FDI) on China's manufacturing domestic firms by using firm-level census data over the period of 2000-03. Based on a Heckman two-step procedure combining first differencing and instrumental variable regression techniques, it is found that FDI has had a positive impact on the export value of domestic firms mainly through backward technology spillovers and a positive impact on the export-to-sales ratio of domestic firms through horizontal export-related information spillovers. After decomposing FDI by different market orientation and domestic firms by different ownership, the paper finds that the positive impact on domestic firms' export values is mainly from the nonexporting and the exporting foreign-invested enterprises while the positive impact on domestic firms' export-to-sales ratios is mainly from the high-exporting foreign-invested enterprises

Description

Keywords

export, foreign direct investment, industrial enterprise, manufacturing, ownership, spillover effect

Citation

Source

Review of International Economics 21.5 (2013): 841–856

Type

Journal article

Book Title

Entity type

Access Statement

Open Access

License Rights

Restricted until

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