Cross-region FDI productivity spillovers in transition economies: Evidence from China

Xiaowen Tian*, Vai Io Lo, Shuanglin Lin, Shunfeng Song

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

9 Citations (Scopus)

Abstract

Prior studies have failed to examine the spatial dimension of FDI productivity spillovers in transition economies. Using data from China, this article investigates how FDI in one location may affect the productivity of domestic firms in another location. The study finds strong evidence that FDI in the growth pole on the coast adversely affects the productivity of domestic firms in the peripheral interior. There is also some evidence that FDI in the peripheral interior positively affects the productivity of domestic firms in the growth pole on the coast. The findings indicate that the inflows of FDI contribute to the widening regional disparities in transition economies like China.

Original languageEnglish
Pages (from-to)105-118
Number of pages14
JournalPost-Communist Economies
Volume23
Issue number1
DOIs
Publication statusPublished - Mar 2011

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