Entrepreneurship and spillovers from multinationals: Evidence from Chinese private firms

Liu, Qing; Lu, Ruosi; Zhang, Chao

doi:10.1016/j.chieco.2014.03.005

Cited by 29 publications

(34 citation statements)

References 22 publications

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“…Using firm-level survey data from China and employing a propensity score matching technique, Liu et al (2014) found that entrepreneurs with work experience in foreign-invested firms perform better in managing private firms. However, none of the existing studies have explored the impact of internationalization of innovation on domestic entrepreneurship.…”

Section: Review Of Related Literaturementioning

confidence: 99%

Foreign direct investment in R&D and domestic entrepreneurship in China’s manufacturing industries

Anwar

Sun

2015

Applied Economics

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This paper argues that internationalization of innovation and the related spillovers can also affect the likelihood of firm entry and exit into an industry. By making use of firm-level panel data from China over the period 2005 to 2007, this paper examines the impact of foreign direct investment (FDI) in research and development (R&D) and the related linkages on entry and exit likelihoods of domestic firms in (i) transport equipment and (ii) electrical machinery and equipment manufacturing industries. In order to evaluate the region-of-origin effect, this paper also separately examines the impact of FDI in R&D originating from (i) all countries except Hong Kong, Macau and Taiwan and (ii) Hong Kong, Macau and Taiwan. Furthermore, the impact of FDI in R&D on entry and exit of Chinese firms in the two industries is examined by splitting the data into large and small firms within the two industries. The results of the pooled probit regression reveal that FDI in R&D and the related spillovers can have a significant impact on the likelihood of entry and exit of domestic firms in transport equipment and electric machinery and equipment industries. The empirical analysis also suggests that the impact of changes in FDI in R&D and the related spillovers varies across firm size.

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Section: Review Of Related Literaturementioning

confidence: 99%

Foreign direct investment in R&D and domestic entrepreneurship in China’s manufacturing industries

Anwar

Sun

2015

Applied Economics

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“…Poole [87] provides indirect evidence that in Brazil the wage rates of local workers increase with the presence of former MNE-trained workers. Liu et al [88] find that private firms in China run by entrepreneurs with MNE experience have higher return to equity (ROE) and return to assets (ROA) than those run by entrepreneurs without such experience. Nevertheless, there has been no empirical analysis of the labor mobility channel of FDI spillovers on domestic CSR.…”

Section: Foreign Direct Investment (Fdi) Spillovers and Csrmentioning

confidence: 99%

FDI Spillovers on Corporate Social Responsibility: The Channel of Labor Mobility

2018

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This paper examines the spillover effects of foreign direct investment on corporate social responsibility of domestic firms, with a focus on the channel of labor mobility. With a corporate social responsibility measure based on corporate responsibility toward the environment, the public, the employees, and the consumers, we test whether and how foreign direct investment affects corporate social responsibility of Chinese firms. Our results show that firms run by entrepreneurs who have work experience and, especially, management experience in multinational enterprises investing in China conduct more corporate social responsibility activities compared with firms run by entrepreneurs without such experience. We further find that multinational enterprise management experience may enhance the entrepreneurial self-assessment of social status, broaden the international vision of entrepreneurs, and reduce the level of firm family control, which help increase firms’ uptake of corporate social responsibility activities. Our results suggest that foreign direct investment can serve as a vehicle for sustainable development, through the transfer of corporate social responsibility-related managerial knowledge from foreign to local firms.

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“…In addition, given that this paper focuses on FDI, this study is related to the extensive literature on FDI technology or human capital spillover (for example Aitken and Harrison, 1997;Javorcik, 2004;Haskel et al, 2007;and Liu et al, 2014;among others). Economic research has cumulated in a rich understanding of how economic globalization can facilitate cross-border technology transfers as well as transfers in managerial expertise.…”

Section: Diffusion Of Ideology Via Fdi In Chinamentioning

confidence: 99%

“…2 Specifically, past research has been conducted on the effect of education on students' ideology toward political participation, democracy, trust in government officials and views of free markets in China (see Cantoni et al, 2017). 3 On the contrary, relevant research on the topic tends to focus on the pecuniary effects of globalization, such as trade and economic development (for example Lin, 2015;and Lin and Sim, 2013), as well as FDI and technological or human capital spillover (for example Aitken and Harrison, 1997;Haskel et al, 2007;Javorcik, 2004;and Liu et al, 2014). 4 FOS can be traced back to the democratic ideology of ancient Athens (see Raaflaub et al, 2007) and concepts of FOS can be found in early human rights documents.…”

Section: Introductionmentioning

confidence: 99%

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Cross‐country diffusion of ideology viaFDI

Lin

2017

Econ Transit

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This paper studies how foreign direct investment (FDI) contributes to ideological convergence across countries. In particular, this report focuses on whether multinational firms transfer freedom of speech (FOS) to local workers in China. Using a large source of individual survey data, it is found that those who work in foreigninvested enterprises (FIEs), especially non-Hong Kong, Macao and Taiwan (non-HMT) invested enterprises tend to prefer FOS. This is in contrast to enterprises that do not work in FIEs. Such patterns are also observed in other related human rights and cultural measures common to Western democracies, but not China's political and local culture. Using policies on FDI as exogenous instruments, and other complementary identification strategies, a causal link for such an ideological transfer is established.JEL classifications: F23, F69, O53.

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Entrepreneurship and spillovers from multinationals: Evidence from Chinese private firms

Cited by 29 publications

References 22 publications

Foreign direct investment in R&D and domestic entrepreneurship in China’s manufacturing industries

Foreign direct investment in R&D and domestic entrepreneurship in China’s manufacturing industries

FDI Spillovers on Corporate Social Responsibility: The Channel of Labor Mobility

Cross‐country diffusion of ideology viaFDI

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