PUBLICATIONS & REPORTS
PUBLICATIONS & REPORTS
From Kitakyushu to the world: AGI, a research institute that studies Asia's economy and society
Comparison between Spillovers from Different Sources of FDI on the Chinese Manufacturing Sector
| Author | Jr-Tsung Huang |
|---|---|
| Date of Publication | 2004. 11 |
| No. | 2004-29 |
| Download | 743KB |
Contents Introduction
The purpose of this study is to assess the impact of foreign direct investment (FDI) on the labor productivity and technical efficiency for a cross-provincial sample of Chinese industrial sectors, with a special focus on different FDI sources. After considering some econometric issues, such as heteroscedasticity, simultaneity, collinearity, model misspecification, and normality, through some related hypotheses testing this study concludes that different sources of FDI might lead to contrasting effects on local firms in Chinese industries. Investments from Taiwan, Hong Kong, and Macao (THM) seem to improve their technical efficiency in production, whereas investments from other foreign countries (OFC) primarily affect industrial production of China’s regions in terms of enhancing labor productivity.