Munich Personal RePEc Archive

FDI Spatial Spillovers in China

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

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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.

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