Processing Trade, FDI and the Exports of Indigenous Firms: Firm-Level Evidence from Technology-Intensive Industries in China

This study examines the impact of processing trade‐foreign direct investment (FDI) on the export competitiveness of indigenous firms using disaggregated firm‐level production data and product‐level trade data from China covering the 2000–07 period. The estimation results show that processing trade‐F...

Full description

Saved in:
Bibliographic Details
Published in:Oxford bulletin of economics and statistics 2011-12, Vol.73 (6), p.792-817
Main Author: Fu, Xiaolan
Format: Article
Language:English
Subjects:
China
Competitiveness
Economic impact analysis
Export demand
Export performance
Export volume
Exports
F10
F14
F23
Foreign direct investment
Foreign investment
High technology
Impact analysis
Innovation
Spillovers
Studies
Technology transfer
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This study examines the impact of processing trade‐foreign direct investment (FDI) on the export competitiveness of indigenous firms using disaggregated firm‐level production data and product‐level trade data from China covering the 2000–07 period. The estimation results show that processing trade‐FDI has generated significant positive information spillover effect on the export performance of indigenous firms. However, its technology spillovers effect on the development of international competitiveness in indigenous firms is limited and in fact exerts a significant depressive effect on the propensity to export in these firms. Indigenous innovation, economies of scale and productivity are found to be the main drivers of export performance in indigenous firms.
ISSN:0305-9049
1468-0084
DOI:10.1111/j.1468-0084.2011.00673.x