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Foreign Firms and Indigenous Technology Development in the People’s Republic of China, Asian Development Review, Vol. 30(2), pp. 49-75

dc.contributor.authorFredrik Sjöholm
dc.contributor.authorNannan Lundin
dc.date.accessioned2015-01-24T13:14:28Z
dc.date.available2015-01-24T13:57:00Z
dc.date.issued2013-08-29T13:57:00Z
dc.identifier.urihttp://hdl.handle.net/11540/1623
dc.description.abstractThe People’s Republic of China (PRC) is currently promoting indigenous technology development through support of Chinese firms and, arguably, by restricting operations of foreign multinational firms. This policy seems to overlook the impact of foreign firms on technology development in local firms. For instance, technology might leak out to local firms though spillovers. Moreover, competition from foreign firms might force local firms to engage in technology development. We examine the impact of foreign direct investment (FDI) on technology development in the PRC. We start by surveying a large and growing literature on FDI and spillovers in the country. Most previous studies find evidence of positive spillovers. We then continue to examine the effect of FDI on competition in the Chinese manufacturing sector and the effect of competition on firms’ research and development (R&D). Our analysis is conducted on a large dataset including all large- and medium-sized Chinese firms over the period 1998–2004. Our results show that FDI increases competition but there are no strong indications of competition affecting investments in R&D.
dc.languageEnglish
dc.publisherAsian Development Bank and Asian Development Bank Institute
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.titleForeign Firms and Indigenous Technology Development in the People’s Republic of China, Asian Development Review, Vol. 30(2), pp. 49-75
dc.typeJournals
dc.subject.adbPeople’s Republic of China
dc.subject.adbFDI
dc.subject.adbspillovers
dc.subject.adbtechnology
dc.subject.adbR&D
dc.title.seriesAsian Development Review
dc.title.volumeVolume 30, Number 2, pp. 49-75
dc.contributor.imprintAsian Development Bank and Asian Development Bank Institute
oar.themeGender
oar.themePoverty
oar.themeSmall Medium Business
oar.identifierOAR-002557
oar.authorSjöholm, Fredrik
oar.authorLundin, Nannan
oar.importtrue
oar.externallinkhttp://www.mitpressjournals.org/loi/adev
oar.googlescholar.linkpresenttrue


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  • Asian Development Review
    The Asian Development Review (ADR) is a professional journal for disseminating the results of economic and development research relevant to Asia and the Pacific. Since 1983, the ADR has been an important part of the history of the Asian Development Bank and its mission to reduce poverty across Asia and the Pacific.

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