Productivity spillover from FDI through vertical and horizontal linkages：Evidence from Chinese manufacturing industries

• Main Authors: Wei-Han Tsao, 曹葳涵
• Other Authors: 林亦珍
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/91680248493630389903

碩士 === 淡江大學 === 經濟學系碩士班 === 99 === This research uses plant-level data on Chinese manufacturing plants over the period 1998 to 2006 to analyze the relationship between foreign direct investment (FDI) and plant-level productivity. Specifically, we examine the effect of FDI on the level of sales, the growth rate of sales, the level of productivity and the growth rate of productivity. The eight narrowly defined industries studied are: cotton and chemical fiber products, instant noodles and other convenience food manufacturing, plastic parts, glass fiber products, automobile parts and accessories, electric components, electronic components, and communication equipment. Empirical results show that, in order to enhance the company''s level of sales,sales growth rate, the level of productivity and the productivity growth rate, cotton and chemical fiber products manufacturing should increase exports and reduce upstream foreign capital. In order to enhance the company''s sales growth rate, the level of productivity and productivity growth rate, firms in the instant noodles and other convenience food manufacturing industry should increase downstream foreign capitals from non-ethnic Chinese and reduced export ‘s share in total industry output. In order to enhance the company''s level of sales, sales growth rate, the level of productivity and the productivity growth rate, firms in the plastic parts manufacturing industry should increase downstream foreign capital and reduce the share of export in total output. In order to enhance logarithm sales, the logarithm value-added productivity and the logarithm value-added productivity mobility rate, firms in the glass fiber and the product manufacturing industry should increase upstream foreign capital, reduced the share of equity from Hong Kong, Macao and Taiwan in the firm and promote competition in the industry. In order to enhance the level of sales, sales growth rate and the level of productivity, the automobile parts and accessories industry should reduce foreign capitals from non-ethnic Chinese. In order to enhance the company''s level of sales and the level of productivity, the electric components manufacturing should encourage investment from Hong Kong, Macao and Taiwan in upstream industries. In order to enhance the level of sales, sales growth rate and the level of productivity, the electronic components industry should increase the share of foreign capital outside the region but within the same industry. In order to enhance the levelof sales and sales growth rate, firms in the communication equipment industry should limit the share of non-ethnic Chinese equity in the upstream. Overall, this study shows that the spillover effect of FDI differs across industries and the sign and magnitude of the spillover effect varies widely depending on the origin of the foreign capital and the location of the foreign capital. Both firms and the government should pay attention to the heterogeneity in the spillover effect of FDI since FDI can be harmful to productivity in some industries.