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Frontiers of Economics in China

Front Econ Chin    2010, Vol. 5 Issue (3) : 489-508
An Empirical Study on FDI International Knowledge Spillovers and Regional Economic Development in China
Jiyong Chen1(), Wei Liu2, Yibo Zhang3, Yangyi Sheng4
1. Economics and Management School, Wuhan University, Wuhan 430072, China; 2. Economics and Management School, Wuhan University, Wuhan 430072, China; 3. Economics and Management School, Wuhan University, Wuhan 430072, China; 4. Development Research Center, The People’s Government of Guangdong Province, Guangzhou 510031, China
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This article has constructed a framework to analyze the relationship between national innovation investments, international knowledge spillover due to FDI and regional technological progress. We use the panel data sample in 1992–2006 from China’s 29 provinces (municipalities or autonomous regions) to test the impact of China’s regional R&D investments, international knowledge spillovers of FDI on its regional technological progress. It reveals that the local investments in science and technology are the most important factors to promote technological progress; for the structure and quality of China’s current FDI, the knowledge spillover effects from FDI, especially through the FDI enterprises’ manufacturing activities, are not obvious; the local gains in its technology development from FDI depends on its economic and technological level. Based on the above conclusions we give the corresponding policy recommendations for China’s FDI policy and regional economic development.

Keywords FDI      knowledge spillover      China regional economic development     
Corresponding Author(s): Jiyong Chen,   
Issue Date: 05 September 2010
 Cite this article:   
Wei Liu,Yibo Zhang,Yangyi Sheng, et al. An Empirical Study on FDI International Knowledge Spillovers and Regional Economic Development in China[J]. Front Econ Chin, 2010, 5(3): 489-508.
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