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Spillovers from Taiwan, Hong Kong, and Macau Investment and from Other Foreign Investment in Chinese Industries
Author(s) -
Huang JrTsung
Publication year - 2004
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1093/cep/byh002
Subject(s) - total factor productivity , spillover effect , productivity , foreign direct investment , investment (military) , china , economics , empirical research , international trade , business , economic geography , international economics , macroeconomics , geography , political science , philosophy , archaeology , epistemology , politics , law
In its analysis of the impact of foreign investment on China's productivity, this article develops two empirical models: one using labor productivity and the other using total factor productivity (TFP). Using cross‐provincial data on Chinese industries for 1993, 1994, and 1997 to regress the empirical models, it is concluded that the impact of investment differed depending on its source, with that from these overseas Chinese enterprises contributing to the spillover effect in regions with a high technology gap, whereas that from other foreign enterprises tending to improve productivity and TFP primarily in regions with a low technology gap. (JEL D24 , F13 , F15 , L60 )