Journal article
Foreign direct investment, domestic sales and exports of local firms: a regional perspective from China
Journal of the Asia Pacific Economy, Vol.21(3), pp.325-338
2016
Abstract
Using a simultaneous equations model, this paper investigates how/whether the presence of foreign direct investment (FDI) affects the performance of local firms in China's (1) leather shoe manufacturing and (2) textile and garment manufacturing industries. We use the value of sales (total revenue) as a measure of firm performance in domestic and export markets. The distinguishing feature of this paper is the use of an FDI presence measure that takes the regional dimension into account. The empirical analysis presented in this paper reveals that the presence of FDI leads to a significant positive impact on the domestic sales and export intensity of local firms in both industries. This result is found to be robust to alternative measures of FDI. Based on the result, it is recommended that, in order to maximize the benefits from inward FDI, Chinese policy-makers must encourage domestic and foreign-invested firms to locate in close geographical proximity.
Details
- Title
- Foreign direct investment, domestic sales and exports of local firms: a regional perspective from China
- Authors
- Sajid Anwar (Author) - University of the Sunshine Coast - Faculty of Arts, Business and LawSizhong Sun (Author) - James Cook University
- Publication details
- Journal of the Asia Pacific Economy, Vol.21(3), pp.325-338
- Publisher
- Routledge
- Date published
- 2016
- DOI
- 10.1080/13547860.2016.1176640
- ISSN
- 1354-7860
- Copyright note
- This is an Author's Accepted Manuscript of an article published in Anwar, S; Sun, Sizhong (2016) Foreign direct investment, domestic sales and exports of local firms: a regional perspective from China. Journal of the Asia Pacific Economy. 21:3, pp.325-338. As published in the Journal of the Asia Pacific Economy 2016 [copyright Taylor & Francis], available online at: http://www.tandfonline.com/10.1080/13547860.2016.1176640
- 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
- 99449802802621
- Output Type
- Journal article
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