| ID | 090796 |
| Title Proper | Double-edged effects of the technology gap and technology spillovers |
| Other Title Information | evidence from the Chinese industrial sector |
| Language | ENG |
| Author | Lai, Mingyong ; Wang, Hua ; Zhu, Shujin |
| Publication | 2009. |
| Summary / Abstract (Note) | This paper proposes a new insight that the technology gap plays double-edged roles in the technology spillovers of foreign direct investment (FDI) through two channels, technology choice set and technology absorptive capability. Applying a multiple-threshold model, we examine the non-linear relationship between the technology gap and technology spillovers based on the provincial panel data of the Chinese industrial sector during 1993-2006. The empirical results support the hypothesis of two thresholds, which are 0.3071 and 0.5214 in terms of the technology gap respectively. The estimated thresholds indicate the sufficient absorptive capability is the premise for FDI technology spillovers. Moreover, it implies the marginal decrease of FDI technology spillover effects in the long run. |
| `In' analytical Note | China Economic Review Vol. 20, No. 3; Sep 2009: p414-424 |
| Journal Source | China Economic Review Vol. 20, No. 3; Sep 2009: p414-424 |
| Key Words | FDI ; Technology Gap ; Technology Spillovers ; Multiple - Threshold Model ; China - Industrial Sector |