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    Regional innovation and spillover effects of foreign direct investment in China: a threshold approach

    Huang, L. and Liu, Xiaming and Xu, L. (2012) Regional innovation and spillover effects of foreign direct investment in China: a threshold approach. Regional Studies 46 (5), pp. 583-596. ISSN 0034-3404.

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    Abstract

    Using a data set on twenty-nine Chinese provinces for the period 1985–2008, this paper establishes a threshold model to analyse the relationship between spillover effects of foreign direct investment (FDI) and regional innovation in China. There is clear evidence of double-threshold effects of regional innovation on productivity spillovers from FDI. Specifically, only when the level of regional innovation reaches the minimum innovation threshold will FDI in the region begin to produce positive productivity spillovers. Furthermore, positive productivity spillovers from FDI will be substantial only when the level of regional innovation attains a higher threshold. The double threshold divides Chinese provinces into three super-regions in terms of innovation, with most provinces positioned within the middle-level innovation super-region. Policy implications are discussed.

    Metadata

    Item Type: Article
    Keyword(s) / Subject(s): Foreign direct investment, Productivity spillovers, Regional innovation, Threshold model, China
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Management
    Depositing User: Administrator
    Date Deposited: 20 Mar 2013 11:08
    Last Modified: 27 Jul 2019 01:32
    URI: http://eprints.bbk.ac.uk/id/eprint/6327

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