FDI Spatial Spillovers in China

Lin, Mi and Kwan, Yum K. (2014): FDI Spatial Spillovers in China. Forthcoming in: The World Economy

Abstract

This paper studies FDI spatial spillovers in China. Empirical investigation reveals that, along the spatial dimension, FDI presence tends to generate negative intra-regional spillovers that dominate other potential positive externalities. The direction, magnitude and scope of inter-regional spillovers vary, depending on the spillover channels. Our empirical findings call for a rethinking of policy-driven agglomeration among indigenous firms and MNEs in developing countries.

• Item Type: MPRA Paper
• Language: English
• Keywords: FDI spillovers; Spatial diffusion; Firm Agglomeration; China
• Subjects: F - International Economics > F2 - International Factor Movements and International Business; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance; F - International Economics > F6 - Economic Impacts of Globalization

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