Quantifying foreign direct investment productivity spillovers in China: A computable general equilibrium model

Ziliang Deng, Rod Falvey, Adam Blake

Research output: Contribution to journalArticleResearchpeer-review

Abstract

For the purposes of this study, we will construct a static monopolistically-competitive computable general equilibrium model to quantify the endogenous productivity spillovers from foreign and domestic firms, using the Chinese economy as a case study. Our simulation results indicate: (i) that the net spillover effects are positive in terms of national total output, GDP and welfare; (ii) that both state-owned and privately-owned firms benefit, but that private firms benefit more; (iii) that industries with large volumes of foreign direct investment (FDI) do not necessarily observe the largest spillover effects; and (iv) that the spillover effects become more prominent when the initial market structure is more concentrated.

Original languageEnglish
Pages (from-to)369-389
Number of pages21
JournalAsian Economic Journal
Volume27
Issue number4
DOIs
Publication statusPublished - Dec 2013

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investment productivity
spillover effect
computable general equilibrium analysis
foreign direct investment
equilibrium model
direct investment
foreign investment
firm
productivity
China
Gross Domestic Product
welfare
simulation
market
economy
industry

Cite this

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Quantifying foreign direct investment productivity spillovers in China : A computable general equilibrium model. / Deng, Ziliang; Falvey, Rod; Blake, Adam.

In: Asian Economic Journal, Vol. 27, No. 4, 12.2013, p. 369-389.

Research output: Contribution to journalArticleResearchpeer-review

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