Export Spillovers to Chinese Firms: Evidence from Provincial Data

Alyson C. Ma

36 citations0/0 files storedJournal of Chinese Economic and Business Studies

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Global trade and economics International Business and FDI Economic and Technological Innovation

Abstract

Multinational firms are important conduits of managerial skills, foreign market linkages, and technology. Foreign export spillovers associated with multinational firms have the potential to reduce entry costs for local exporting firms. This paper examines whether exports by multinational firms increase the probability of exporting by domestic Chinese firms. The findings from the Probit estimation highlight the varying relationships between multinational exports and local foreign entry based on the type of ownership. The results from separating foreign-invested enterprises into overseas Chinese companies and OECD-based multinational firms suggest that the export activity of the former does not increase the probability of exporting by local firms, whereas the latter positively influence the export decision of local firms, particularly under processing trade.

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References

1999Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela 2004Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages 1999Networks versus markets in international trade 1998Multinational Corporations and Spillovers 2002Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers through Backward Linkages 1999Foreign direct investment as a catalyst for industrial development 1974Multinational Firms, Competition, and Productivity in Host-Country Markets 1997Spillovers, foreign investment, and export behavior

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