| By: |
Lundin, Nannan (Research Institute of Industrial Economics (IFN));
Sjöholm, Fredrik (Research Institute of Industrial Economics (IFN));
He, Ping (National Bureau of Statistics of China);
Qian , Jinchang (National Bureau of Statistics of China) |
| Abstract: |
FDI can be an important channel for developing countries’ ability to get
access to new technology. The impact of FDI on domestically-owned firms’
technology development is less examined but it is frequently argued that
technology externalities or demonstration effects could have a positive
impact. Another and so far little examined effect of FDI on technology
development in domestically-owned firms is through the impact on competition.
We examine the effect of FDI on competition in the Chinese manufacturing
sector and the effect of competition on firms’ R&D. Our analysis is conducted
on a large dataset including all Chinese large and medium sized firms over the
period 1998-2004. Our results show that FDI increases competition but there
are no strong indications of competition affecting investments in R&D. |
| Keywords: |
China; FDI; Competition; R&D |
| JEL: |
F23 L11 O31 |
| Date: |
2007–06–21 |
| URL: |
http://d.repec.org/n?u=RePEc:hhs:iuiwop:0708&r=fdg |