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Does foreign direct investment facilitate technological progress? Evidence from Chinese industries

Liu, X.
; 
Wang, Chengang
Publication Date
2003
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Keywords
Foreign direct investment, Total factor productivity, Chinese industries, Technological progress
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Peer-Reviewed
Yes
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closedAccess
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Management and Law Publications
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Abstract
This paper studies the impact of foreign direct investment (FDI) on total factor productivity (TFP) for a cross sectional sample of Chinese industrial sectors. The possible determinants of TFP are sought with special focus on FDI. An endogeneity test is performed in order to avoid inconsistent results. Evidence indicates that foreign presence, the level of R&D and the firm size are the most important factors enhancing TFP in Chinese industries. The findings from this study support the argument that attracting FDI is an effective way of introducing advanced technology to host countries.
URI
http://hdl.handle.net/10454/3621
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Citation
Liu, X. and Wang, C. (2003). Does foreign direct investment facilitate technological progress? Evidence from Chinese industries. Research Policy. Vol. 32, No. 6, pp. 945-953.
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https://doi.org/10.1016/S0048-7333(02)00094-X
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Article
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