Please wait a minute...

Frontiers of Economics in China

Front. Econ. China    2013, Vol. 8 Issue (4) : 535-551     DOI: 10.3868/s060-002-013-0027-9
Orginal Article |
Industry Mix and Curvilinear Spillovers from FDI in China
William M. Tracy()
Lally School of Management and Technology, Rensselaer Polytechnic Institute, Troy, NY 12309, USA
Download: PDF(1371 KB)  
Export: BibTeX | EndNote | Reference Manager | ProCite | RefWorks
Abstract

This paper uses industry and province specific Chinese industrial data to demonstrate a potential causal link between two strands of the FDI literature. The first strand suggests that the impact of spillovers from inward FDI is less robust in middle-income economies than in either high-income or low-income economies. The second strand suggests diminishing returns of inward FDI on horizontal labor productivity in low-technology industries but not in high-technology industries. This paper suggests a link between these two phenomena. Specifically, if both FDI intensity and industry mix vary with the level of economic development, then an industry-dependent relationship between inward FDI and horizontal spillovers could cause middle-income economies to derive fewer benefits from inward FDI than either high- or low-income economies. This paper also verifies the curvilinear relationship between FDI in low-technology industries and horizontal labor productivity without relying on problematic FDI from Hong Kong, Taiwan and Macao.

Keywords foreign direct investment      curvilinear      China      spillovers     
Issue Date: 10 August 2016
 Cite this article:   
William M. Tracy. Industry Mix and Curvilinear Spillovers from FDI in China[J]. Front. Econ. China, 2013, 8(4): 535-551.
 URL:  
http://journal.hep.com.cn/fec/EN/10.3868/s060-002-013-0027-9
http://journal.hep.com.cn/fec/EN/Y2013/V8/I4/535
Service
E-mail this article
E-mail Alert
RSS
Articles by authors
William M. Tracy
Related articles from Frontiers Journals
[1] Tan Li,Larry Qiu,Ying Xue. Understanding China’s Foreign Trade Policy: A Literature Review[J]. Front. Econ. China, 2016, 11(3): 410-438.
[2] Xu Li,Xiang Shao,Zhigang Tao. Hollowing out of the Real Economy: Evidence from China’s Listed Firms[J]. Front. Econ. China, 2016, 11(3): 390-409.
[3] Guoqiang Tian. China’s Reform: History, Logic and Future[J]. Front. Econ. China, 2016, 11(2): 210-231.
[4] Jiwei Lou. The Possibility and Approaches to an Upper Middle Growth Rate[J]. Front. Econ. China, 2016, 11(2): 196-209.
[5] Xiaobing Wang,Jenifer Piesse,Zhengmao Ye. Labour Markets in China: A Study of the Structure and Evolution of Wages[J]. Front. Econ. China, 2016, 11(2): 265-301.
[6] Robert Barro. China’s Growth Prospects[J]. Front. Econ. China, 2016, 11(2): 192-195.
[7] Yanrui Wu. China’s Capital Stock Series by Region and Sector[J]. Front. Econ. China, 2016, 11(1): 156-172.
[8] Qi Sun,Tiao Li,Fang Wu. Enforcement of Capacity-Differentiated Regulations in China: Evidence from Coal-Fired Power Plants[J]. Front. Econ. China, 2015, 10(4): 604-628.
[9] Yongqin Wang,Julan Du,Kai Wang. The Determinants of Location Choices of China's ODI: Institutions, Taxation and Resources[J]. Front. Econ. China, 2015, 10(3): 540-565.
[10] Yang Ji,Ran Li,Jingxian Zou. Is the Phillips Curve Valid in China?[J]. Front. Econ. China, 2015, 10(2): 335-364.
[11] Keqiang Hou,Luke Chan,Xin Zeng. Information Linkages between Chinese and World Copper Futures Markets[J]. Front. Econ. China, 2015, 10(2): 272-300.
[12] Jeffrey Frankel. China Is Not yet Number One[J]. Front. Econ. China, 2015, 10(1): 1-6.
[13] Huayi Yu. Spatial-Temporal Changes of Housing Bubbles in China’s Major Cities: 1999 to 2012[J]. Front. Econ. China, 2015, 10(1): 137-167.
[14] Guan Gong,Hongmei Wang,Lingli Xu. The Risks and Dynamics of Health Care Expenditures in Urban China: An Illustration in Kunshan City[J]. Front. Econ. China, 2014, 9(4): 634-660.
[15] Keun Lee,Shi Li. Possibility of a Middle Income Trap in China: Assessment in Terms of the Literature on Innovation, Big Business and Inequality[J]. Front. Econ. China, 2014, 9(3): 370-397.
Viewed
Full text


Abstract

Cited

  Shared   
  Discussed