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.
| Original language | English |
|---|---|
| Pages (from-to) | 945-953 |
| Number of pages | 9 |
| Journal | Research policy |
| Volume | 32 |
| Issue number | 6 |
| DOIs | |
| Publication status | Published - 1 Jun 2003 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 10 Reduced Inequalities
Keywords
- Chinese industries
- Foreign direct investment
- Technological progress
- Total factor productivity
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