FDI Spatial Spillovers in China

Lin, Mi; Kwan, Yum K.

doi:10.2139/ssrn.2540126

Cited by 3 publications

(3 citation statements)

References 48 publications

(16 reference statements)

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“…The main reason may be that compared with the Central-Western region, the Eastern region is located on the coast and it is easier to attract FDI, which promotes local and its neighboring GTFP growth through learning effects. In contrast, the Central-Western region is located inland and it is more difficult to attract FDI [ 77 ]. To pursue economic growth, the Central-Western local governments tend to launch the competition of “race to the bottom”, leading to a large number of entries of FDI with high energy consumption and pollution emissions, which is not conducive to GTFP growth.…”

Section: Resultsmentioning

confidence: 99%

Relationship between FDI, fiscal expenditure and green total-factor productivity in China: From the perspective of spatial spillover

Wang

Zhang

2021

PLoS ONE

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Deeply investigating the relationship between foreign direct investment (FDI), fiscal expenditure and green total-factor productivity (GTFP) is beneficial to formulating effective policies to promote the high-quality development in China. Based on theoretical mechanism analysis, with panel data of China’s mainland 30 provinces during 2003–2017, this paper utilizes spatial econometric model to empirically explore the effects of FDI, fiscal expenditure and their interaction item on the growth of GTFP in China. The results show that FDI significantly promote the growth of the local and its neighboring GTFP, and both fiscal expenditure and the interaction between FDI and fiscal expenditure exert significantly negative effects on the growth of GTFP in the local and its neighboring regions. A series of robustness checks and the endogeneity test can ensure the reliability of these results. In addition, great heterogeneity can be found across China’s different regions in the relationship between FDI, fiscal expenditure and GTFP. The conclusions suggest that it is necessary to give fully play to the synergy between FDI and fiscal expenditure and formulate regionally targeted policies to improve GTFP and promote high-quality development in China.

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Section: Resultsmentioning

confidence: 99%

Relationship between FDI, fiscal expenditure and green total-factor productivity in China: From the perspective of spatial spillover

Wang

Zhang

2021

PLoS ONE

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“…Despite these regional arguments, existing results for regional spillovers are rather mixed for country analyses. For example, Aitken and Harrison (1999), Driffield (2004), Higón and Vasilakos (2011), Liu and Wei (2006) and Xu and Sheng (2012) found evidence for regional spillovers; whereas, Halpern and Muraközy (2005), Sjöholm (1999), Kokko and Kravtsova (2012) and Lin and Kwan (2014) failed to confirm that regional dimension matters. This heterogeneity on regional spillover findings could be a result of misspecification of these effects which are conditional on a number of factors.…”

Section: On the Role Of Regional Effectmentioning

confidence: 99%

Southern MNCs in Switzerland and regional productivity spillovers in services/construction industry

Hamida

Khairallah

2016

IJBEM

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As more developing and transition market firms (southern MNCs) are engaged in outward FDI in European advanced economies, a fundamentally important question has to be addressed: whether this investment leads to positive productivity effects for host economies. Our paper addresses this issue by examining whether there are indicators of regional spillovers from the entry and the presence of southern MNCs in the service/construction industry. We suggest that: 1) regional spillovers from southern MNCs are co-determined by local and foreign characteristics, namely, FDI motivation and technological capacity of the local host country firms; 2) possible interaction effects between local technological capacity and FDI motivation would also influence the size and the extent of regional spillovers from southern MNCs. Using firms-level data from Switzerland, we found that knowledge-exploiting FDI (KE FDI) and knowledge-seeking FDI (KS FDI) have different amounts of spillovers. In addition, human capital development in local firms appears to be essential in gaining large regional spillovers. This allows for positive regional spillovers for high technology firms when southern MNCs are assigned KE mandates and for low technology firms when southern MNCs invest in KS FDI.

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“…This makes the system‐GMM estimator an obvious candidate for the estimation of models like equation when X is endogenous to the dependent variable. There is indeed now a growing number of papers in various fields of applied economic analysis that use system‐GMM in dynamic spatial models (see, among others, Neumayer & De Soysa, ; Bouayad‐Agha, Turpin, & Vedrine, ; Cho, Dreher, & Neumayer, ; Park & Park, ; Lin & Kwan, ; Kubis & Schneider, ).…”

Section: Econometric Estimation Of a Dynamic Model With Spatial Effectsmentioning

confidence: 99%

Dynamic spatial panel estimates of war contagion

Carmignani

Kler

2017

World Economy

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We estimate the temporal, spatial and “spatio‐temporal” effects of war using a dynamic spatial panel model. Our argument is that it is important to account for both the space and temporal lags concurrently, while instead the existing literature largely tends to focus on one or the other. Key findings are as follows: first, there is evidence that both temporal and spatial effects significantly impact upon the duration of war. Second, we also find that the combined “spatio‐temporal” interaction effect is significant only when excluding contemporaneous spatial lag effect. Third, while stronger for high‐intensity conflict, spatial and temporal effects remain significant also for low‐intensity conflict. Fourth, the spatial effect is stronger in magnitude for interstate wars. Our results point to the importance of regional co‐operation for conflict prevention and peace stabilisation.

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FDI Spatial Spillovers in China

Cited by 3 publications

References 48 publications

Relationship between FDI, fiscal expenditure and green total-factor productivity in China: From the perspective of spatial spillover

Relationship between FDI, fiscal expenditure and green total-factor productivity in China: From the perspective of spatial spillover

Southern MNCs in Switzerland and regional productivity spillovers in services/construction industry

Dynamic spatial panel estimates of war contagion

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