FDI technology spillovers, geography, and Spatial diffusion

Lin, Mi and Kwan, Yum K. (2015) FDI technology spillovers, geography, and Spatial diffusion. In: CHCHE International Conference on Economic Linkage, May 30 2015, Chu Hai College of Higher Education, Hong Kong.

IREF_Kwan and Lin_20150706.pdf

Request a copy
[img] PDF
IREF_Kwan and Lin_20150706.pdf - Whole Document
Restricted to Repository staff only

Item Type:Conference or Workshop contribution (Paper)
Item Status:Live Archive


This paper investigates the geographic extent of FDI technology spillovers and associated spatial diffusion. By adopting a spatiotemporal autoregressive panel model as the platform of our study, the complex impact resulting from FDI penetration is separated into spatial direct and indirect effect while accounting for feedback loops among regions. A set of spatially partitioned summary measures is produced to identify and to quantify FDI spillovers from different channels with distinct geographic scopes. Empirical results based on data from China document that the direct impacts of FDI presence to a specific location itself are likely to be negative. Domestic firms mainly benefit from FDI presence in their neighboring regions through knowledge spillovers that have wider geographic scope. Negative market stealing effect nevertheless has no spatial boundary. Policy implications of these findings are discussed.

Keywords:FDI spillovers, Spatial diffusion, Spatial dynamic panel, Chinese economy
Subjects:L Social studies > L140 Econometrics
L Social studies > L160 International Economics
L Social studies > L100 Economics
Divisions:Lincoln International Business School
Related URLs:
Relation typeTarget identifier
ID Code:17847
Deposited On:10 Jul 2015 14:15

Repository Staff Only: item control page