FDI’s Spillover Effects on China’s Growth Quality

SHEN Kunrong1 and FU Yuanhai 1,2

1School of Economics, Nanjing University
2School of Economics and Trade, Hunan University of Commerce

Abstract:

Using panel data of 29 regions in China from 1999 to 2007, this paper presents a systematic evaluation of how FDI’s spillover effects impact the quality of China’s indigenous economic growth. Research outcomes suggest that technology transfers and diffusion have a positive effect on indigenous growth quality. Spillover effects (mainly competition effect) have primarily negatively affected indigenous growth quality. The effect on indigenous growth quality is positive only in sub-samples with high foreign capital concentration and when the spillover effect is similar to the technology transfer and diffusion effect brought about by localization. It is also found that technology gaps, foreign capital concentration and value added ratio gaps are important factors affecting the impact of technology transfer and diffusion on indigenous economic growth.

Key Words:

technology transfer and diffusion; spillover effect; economic growth quality

¥0.01加入购物车