Technological spillovers and industrial growth in Chinese regions

L. Wang*, H. Meijers, A. Szirmai

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Using a new data set on regional inputs and outputs, this paper focuses on the role of interregional technology spillovers in the process of industrial growth in Chinese regions from 1990 till 2005. Inflows of foreign direct investment (FDI) increase rapidly between 1990 and 1998 and after 2001. Domestic capital investment increases even more rapidly than FDI, resulting in declining FDI intensity from 1995 onward. Domestic research and development (R&D) investment accelerates after 1998. Regional industrial growth benefits from interregional R&D spillovers. From 1998 onward, it also benefits from international FDI spillovers. Interestingly, FDI in a region has a negative impact on the growth of industrial output in neighboring regions.

Original languageEnglish
Pages (from-to)233-257
Number of pages25
JournalIndustrial and Corporate Change
Volume26
Issue number2
DOIs
Publication statusPublished - Apr 2017

JEL classifications

  • o33 - "Technological Change: Choices and Consequences; Diffusion Processes"
  • o18 - "Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure"
  • o25 - Industrial Policy

Keywords

  • RESEARCH-AND-DEVELOPMENT
  • FOREIGN DIRECT-INVESTMENT
  • PRODUCTIVITY SPILLOVERS
  • ECONOMIC-GROWTH
  • KNOWLEDGE SPILLOVERS
  • FDI SPILLOVERS
  • 2 FACES
  • INNOVATION
  • CONVERGENCE
  • RETURNS

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