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on China |
| By: | Wim Suyker; Henri de Groot |
| Abstract: | China’s spectacular economic performance over the past few decades has had a positive net impact on the Dutch economy. Imports of cheap Chinese products have lowered Dutch inflation. Increasing Chinese exports to Europe have strengthened the role of the Netherlands as a key European distribution centre. Strongly increasing Chinese exports did not have a noticeable impact on the pace of restructuring in the Netherlands. Nor did this development lead to higher unemployment or did it cause a marked widening of Dutch income differentials. Concerning competition on world markets, Chinese export products are more complements than substitutes for Dutch export products. The Chinese economy is expected to continue its rapid expansion. Over the next five years, Chinese exports are likely to double. Increasing trade with China will continue and is expected to enhance Dutch welfare in the upcoming years and will continue to be associated with modest increases in competition and continued restructuring on some markets. |
| Keywords: | China; Dutch economy; globalisation; trade; scenario analysis; FDI |
| JEL: | F14 F23 F40 F47 J31 O40 O57 |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:docmnt:127&r=cna |
| By: | Sourafel Girma (University of Nottingham); Yundan Gong (University of Nottingham); Holger Görg (University of Nottingham and IZA Bonn) |
| Abstract: | We investigate whether inward FDI, either at the firm or industry level, has any impact on product innovation by Chinese State owned enterprises (SOEs). We use a comprehensive firm level panel data set of Chinese SOEs covering the period 1999 to 2003. Our results show that foreign capital participation is associated with higher innovative activity. Inward FDI in the sector has a negative effect on innovative activity in SOEs. However, there is a positive effect of FDI on SOEs that export, invest in human capital or R&D, or have prior innovation experience. We also find that SOEs with internal R&D activity and human capital development are successful innovators. Hence, our results suggest that rather than relying on sector level inward FDI to improve domestic innovative activity, it is important to get the firm-level fundamentals right. |
| Keywords: | innovation, FDI, state owned enterprises, spillovers, competition, China |
| JEL: | F23 O31 |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp2267&r=cna |