| ID | 113012 |
| Title Proper | Does foreign direct investment affect the growth of local firms? the case of China's electrical and electronics industry |
| Language | ENG |
| Author | Kimura, Koichiro |
| Publication | 2012. |
| Summary / Abstract (Note) | Does foreign direct investment (FDI) into developing countries affect the growth of local firms in host countries? Using a dataset of 38 sectors in China's electrical and electronics industry, in this paper, we analyze whether FDI has a positive effect on local firms, with technology spillovers, added value and increasing total factor productivity, or a negative, market stealing, effect. Estimating the relationship between growth of local firms and investment of foreign firms, our results show that FDI is likely to have a negative impact on the growth of local firms in sectors with large disparities in technology and less experience in business. Therefore, local firms lacking in technology need to find markets with no competition from foreign firms or determine strategies to compensate technology disparities. |
| `In' analytical Note | China and World Economy Vol. 20, No.2; Mar-Apr 2012: p.98-120 |
| Journal Source | China and World Economy Vol. 20, No.2; Mar-Apr 2012: p.98-120 |
| Key Words | China ; Electrical and Electronics Industry ; Foreign Direct Investment ; Technology Disparity ; Technology Spillover ; Total Factor Productivity |