Regional Innovation and Spillover Effects of Foreign Direct Investment in China: A Threshold Approach

Huang, Lingyun; Liu, Xiaohui; Xu, Lianhua

doi:10.1080/00343404.2010.520694

Cited by 57 publications

(45 citation statements)

References 67 publications

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“…One reason is that these empirical results largely depend on the method of measuring the absorptive capability of the host economy (Liu and Nishijima, 2013). From this viewpoint, Todo and Miyamoto (2006), Fu (2008), Lööf (2009), andHuang et al (2012), all of which have stressed the role of R&D activities as an intermediate factor of technology transfer, are noteworthy. Therefore, in this paper, we will use R&D potential as a proxy for the absorptive capability of Russia instead of the average education level in the recipient country, which has been adopted by many preceding studies on developing economies, in order to reexamine the absorption capacity hypothesis in the case of the Russian regions.…”

Section: Examination Of the Absorptive Capacity Hypothesismentioning

confidence: 99%

Foreign direct investment and regional economic development in Russia: an econometric assessment

Iwasaki

Suganuma

2015

Econ Change Restruct

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Abstract:In this paper, we estimate the effect of foreign direct investment (FDI) on total factor productivity (TFP) in Russian regions, paying special attention to the country's investment boom and the remarkable regional gaps in terms of cumulative direct investments in and after 2003. We also examine possible synergistic effects between FDI and local R&D potential to test the absorptive capacity hypothesis. Our estimation results strongly suggest the remarkable role of FDI in the regional economic development in Russia. In addition, we found that the positive effect of FDI on TFP may increase in the regions that received larger amounts of foreign capital.Furthermore, we detected a surprisingly robust and positive synergistic effect between FDI and local R&D potential, indicating that the absorptive capability is essential for linking FDI and regional economic development in Russia. JEL classification numbers: F21, O11, P25, P33, R11

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Section: Examination Of the Absorptive Capacity Hypothesismentioning

confidence: 99%

Foreign direct investment and regional economic development in Russia: an econometric assessment

Iwasaki

Suganuma

2015

Econ Change Restruct

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“…Regional innovation capability is often measured by regional patent applications as intermediate innovative outputs Liu and White, 1997;Usai, 2011;Wang and Zhou, 2013). Patent application count accurately represents innovation capability of individual regions as the same patent application standards and procedures are applied across regions (Huang et al, 2012;Usai, 2011). Following Paci andUsai (1999), Fu (2008) and Huang et al (2012), we use the number of total domestic patent applications per 10,000 inhabitants as the primary dependent variable, which reduces the heterogeneity of territorial units.…”

Section: Methodsmentioning

confidence: 99%

Firm ownership, industrial structure, and regional innovation performance in China's provinces

Li¹,

Sutherland²,

Ning³

et al. 2014

Technology Analysis & Strategic Management

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Use policyThe full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details. provinces. Specifically, we explore how the extent of specialization and diversification in regional industrial structures at the province level foster both MAR and Jacobs spillovers, as well as how foreign and state ownership influence regional innovation. We find: (i) China's regional innovation systems benefit from Jacobs but not MAR externalities, with the former spurring higher quality innovation in the form of increased invention patenting; (ii) state owned enterprises and foreign invested enterprises advance local innovation, with the latter again fostering higher quality innovation; (iii) a convergence towards the combination of low specialization and high diversity in provincial industry is taking place between China's more developed inland coastal provinces and less developed inland provinces. Implications and suggestions for policy-making and future research are discussed.

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“…However, Hansen [79] provides an inequation for calculating the area of rejection. When LR 1 (λ) > −2 ln(1 − √ 1 − α), the null hypothesis would be rejected, where α is the level of significance [80].…”

Section: The Principle Of Estimating and Testing The Thresholdsmentioning

confidence: 99%

“…However, there may be more than one threshold. Next, we express how to estimate the coefficients of variables for a double threshold model briefly, and a multi-threshold model can be extended based on the single threshold model [80]. The double threshold model is as follows:…”

Section: The Principle Of Estimating and Testing The Thresholdsmentioning

confidence: 99%

An Empirical Research of FDI Spillovers and Financial Development Threshold Effects in Different Regions of China

Wang

Liu

2017

Sustainability

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Based on a comprehensive review of previous studies about the threshold effects of financial development on the process of foreign direct investment (FDI) spillovers, the present work roundly measures the financial development from the aspects of scale, structure, and efficiency and applies a multiple threshold regression model to estimate the threshold effects of financial development on FDI spillovers, and then examines the inherent relationship between FDI spillovers effects and the financial development from the three aspects, respectively, in different regions of China, based on regional panel data from 2000 to 2014. The results revealed that there are two thresholds of financial development scale, structure and efficiency, existing in the FDI spillover processes in different regions. The FDI spillovers effects are greatest in the eastern region and are generally smallest in the western region. There is a negative correlation between FDI spillovers effects and the financial development scale or efficiency in eastern and central region. Moreover, there is positive correlation between FDI spillovers effects and the financial development structure in eastern and central region. Additionally, there is a positive correlation between FDI spillovers effects and the financial development scale, structure, or efficiency in western region. The capital, labor, and regional technology progress have positive effects on economic growth in different regions and the effects of financial development on economic growth are not unanimous in each region. Based on the empirical results, some policies on how to develop regional finances and how to introduce FDI to promote economic growth are recommended.

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Regional Innovation and Spillover Effects of Foreign Direct Investment in China: A Threshold Approach

Cited by 57 publications

References 67 publications

Foreign direct investment and regional economic development in Russia: an econometric assessment

Foreign direct investment and regional economic development in Russia: an econometric assessment

Firm ownership, industrial structure, and regional innovation performance in China's provinces

An Empirical Research of FDI Spillovers and Financial Development Threshold Effects in Different Regions of China

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