Technological spillovers and industrial growth in Chinese regions
Lili Wang, Huub Meijers & Adam Szirmai
#2013-044
This paper focuses on the role of interregional technology spillovers in
the process of industrial growth in Chinese regions in the period
1990-2005. Inflows of FDI increased rapidly from 1990 till 1998, slowing
down thereafter. Domestic R&D investment accelerated after 1998.
Regional industrial growth benefits from both interregional R&D
spillovers and after 1998 from international FDI spillovers. However, in
contrast to R&D spillovers, FDI spillovers contribute conditionally,
mainly in areas where local R&D stocks are high enough. Interestingly,
indirect interregional FDI spillover effects are negative. Foreign
investment in one region attracts resources from regions with less FDI,
thus having a negative influence on growth of industrial output in
neighbouring regions.
Keywords: Technological spillovers; Interregional spillovers; R&D;
Foreign direct investment; Industrial growth; Chinese industry
JEL Classification: F43, O14, O33, R11, R12
