Journal article
Entry of foreign firms and the R&D behaviour: a panel data study of domestic and foreign firms in China's manufacturing sector
Economics of Innovation and New Technology, Vol.23(8), pp.739-757
2014
Abstract
Rapid globalization has resulted in increased competitive pressures. The entry of foreign firms in a host economy increases the level of competition faced by not only the domestic firms but also the existing foreign firms. We argue that domestic firms, especially in developing countries, respond to this situation by increasing their research and development (R&D) spending, whereas the foreign firms decrease their R&D spending. By making use of firm-level panel data from China's manufacturing sector, over the period 2005-2007, this paper investigates the impact of the entry of foreign firms on R&D behaviour of domestic and foreign firms. Empirical analysis, based on Tobit and Instrumental Variables Tobit regression, reveals that foreign entry increases the R&D intensity of domestic firms but its impact on R&D intensity of foreign firms is negative. The estimated results are found to be robust across balanced and unbalanced panels. © 2014 © 2014 Taylor & Francis.
Details
- Title
- Entry of foreign firms and the R&D behaviour: a panel data study of domestic and foreign firms in China's manufacturing sector
- Authors
- Sajid Anwar (Author) - University of the Sunshine Coast - Faculty of Arts and BusinessS Sun (Author) - James Cook University
- Publication details
- Economics of Innovation and New Technology, Vol.23(8), pp.739-757
- Publisher
- Routledge
- Date published
- 2014
- DOI
- 10.1080/10438599.2014.887179
- ISSN
- 1043-8599
- Copyright note
- Copyright © 2014 Taylor & Francis. This is an Author's Accepted Manuscript of an article published in Anwar, S, Sun, S (2014) Entry of foreign firms and the R&D behaviour: a panel data study of domestic and foreign firms in China's manufacturing sector. Economics of Innovation and New Technology, Vol. 23, No. 8, pp.739-757, available online at: http://www.tandfonline.com/10.1080/10438599.2014.887179
- Organisation Unit
- School of Business and Creative Industries; Indigenous and Transcultural Research Centre; University of the Sunshine Coast, Queensland; USC Business School - Legacy
- Language
- English
- Record Identifier
- 99448950202621
- Output Type
- Journal article
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