Journal article
Foreign direct investment in R&D and domestic entrepreneurship in China’s manufacturing industries
Applied Economics, Vol.47(16), pp.1633-1651
2015
Abstract
This paper argues that internationalization of innovation and the related spillovers can also affect the likelihood of firm entry and exit into an industry. By making use of firm-level panel data from China over the period 2005 to 2007, this paper examines the impact of foreign direct investment (FDI) in research and development (R&D) and the related linkages on entry and exit likelihoods of domestic firms in (i) transport equipment and (ii) electrical machinery and equipment manufacturing industries. In order to evaluate the region-of-origin effect, this paper also separately examines the impact of FDI in R&D originating from (i) all countries except Hong Kong, Macau and Taiwan and (ii) Hong Kong, Macau and Taiwan. Furthermore, the impact of FDI in R&D on entry and exit of Chinese firms in the two industries is examined by splitting the data into large and small firms within the two industries. The results of the pooled probit regression reveal that FDI in R&D and the related spillovers can have a significant impact on the likelihood of entry and exit of domestic firms in transport equipment and electric machinery and equipment industries. The empirical analysis also suggests that the impact of changes in FDI in R&D and the related spillovers varies across firm size.
Details
- Title
- Foreign direct investment in R&D and domestic entrepreneurship in China’s manufacturing industries
- Authors
- Sajid Anwar (Author) - University of the Sunshine Coast - Faculty of Arts and BusinessSizhong Sun (Author) - James Cook University
- Publication details
- Applied Economics, Vol.47(16), pp.1633-1651
- Publisher
- Routledge
- Date published
- 2015
- DOI
- 10.1080/00036846.2014.1000527
- ISSN
- 0003-6846
- Copyright note
- Copyright © 2015 The Author. This is an Author's Accepted Manuscript of an article published in Applied Economics, 2015, available online: http://www.tandfonline.com/10.1080/00036846.2014.1000527
- 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
- 99448799802621
- Output Type
- Journal article
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