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Mutual productivity spillovers between foreign and local firms in China

Wei, Y. and Liu, Xiaming and Wang, C. (2008) Mutual productivity spillovers between foreign and local firms in China. Cambridge Journal of Economics 32 (4), pp. 609-631. ISSN 0309-166X.

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The existing literature treats advanced technology sourcing as the only cause of reverse productivity spillovers from local to foreign firms and implies that mutual spillovers between foreign and local firms can only happen in the developed world. This paper argues that the diffusion of indigenous technology and local knowledge helps the productivity enhancement of multinationals, so that there can be mutual spillovers even in a developing country. The results from a large-sample firm-level econometric analysis and a comparative case study of seven companies in Chinese manufacturing support this new argument, as mutual spillovers are identified between local Chinese firms and overseas Chinese or OECD-invested firms.

Item Type: Article
Additional Information: This is a pre-copy-editing, author-produced PDF of an article accepted for publication in Cambridge Journal of Economics following peer review. The definitive publisher-authenticated version - Cambridge Journal of Economics 32(4), pp.609-631, July 2008 is available online at:
Keyword(s) / Subject(s): Foreign direct investment, indigenous knowledge, mutual productivity spillovers
School or Research Centre: Birkbeck Schools and Research Centres > School of Business, Economics & Informatics > Management
Depositing User: Administrator
Date Deposited: 12 May 2011 13:52
Last Modified: 29 Apr 2013 10:00

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