Identifying IFDI and OFDI Productivity Spatial Spillovers: Evidence from China. Issue 5 (8th April 2020)

• Record Type: Journal Article
• Authors: Huang, Youxing; Yang, Huixin
• Is Part Of: Emerging markets finance & trade. Volume 56:Issue 5(2020)
• Page Start: 1124
• Page End: 1145
• Publication Date: 2020-04-08
• Subjects: Chinese manufacturing -- foreign direct investment -- productivity -- spatial econometrics -- spillovers; F21 -- F23 -- O53 -- L60; Balkan Peninsula -- Commerce -- Periodicals; Balkan Peninsula -- Foreign economic relations -- Periodicals; Europe, Central -- Commerce -- Periodicals; Europe, Central -- Foreign economic relations -- Periodicals; Europe, Eastern -- Commerce -- Periodicals; Europe, Eastern -- Foreign economic relations -- Periodicals; Turkey -- Commerce -- Periodicals; Turkey -- Foreign economic relations -- Periodicals; Asia -- Commerce -- Periodicals; Asia -- Foreign economic relations -- Periodicals; Eurasia -- Commerce -- Periodicals; Eurasia -- Foreign economic relations -- Periodicals; 382.05
• DOI: 10.1080/1540496X.2018.1553161
• Languages: English
• ISSNs: 1540-496X

Abstract

ABSTRACT: Using an original and unique merged large-scale Chinese dataset over 2002–2007, this article investigates the productivity spatial spillover effects from both inward and outward foreign direct investment (FDI) to private-owned domestic firms based on intra- and inter-regional dimensions. Results show strong evidence that the positive outward FDI (OFDI) spillover effect dominates in inter-region, whereas no significant positive effect exists in intra-region. By contrast, no significant spatial spillover effect is observed from inward FDI (IFDI). In addition, there exists the optimum geographical distance on productivity spatial spillovers as a result of the non-linear impact of the geographical proximity. These results are robust after controlling potential endogeneity and to different specifications.