Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/30931
Title: Productivity spillovers from foreign direct investment : firm-level evidence from China
Authors: Xu, X 
Sheng, Y
Keywords: Asia
China
Foreign direct investment
Spillover effects
Issue Date: 2012
Publisher: Pergamon Press
Source: World development, 2012, v. 40, no. 1, p. 62-74 How to cite?
Journal: World development 
Abstract: Using firm-level census data, this paper examines the spillover effects of foreign direct investment (FDI) on domestic firms in the Chinese manufacturing industry between 2000 and 2003. Our analysis takes into account the endogeniety of input choices, simultaneity bias, and clustering errors that are known to cause biased and inefficient estimations. Our results suggest that positive spillovers from FDI arise from forward linkages where domestic firms purchase high-quality intermediate goods or equipment from foreign firms in the upstream sectors. Our results also show that domestic firms differ significantly in the extent to which they benefit from FDI.
URI: http://hdl.handle.net/10397/30931
ISSN: 0305-750X
EISSN: 1873-5991
DOI: 10.1016/j.worlddev.2011.05.006
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