Quantifying foreign direct investment productivity spillovers in China: A computable general equilibrium model

This source preferred by Adam Blake

Authors: Blake, A., Deng, Z. and Falvey, R.

http://www.gep.org.uk/leverhulme/publications/Papers/2009/2009_18.php

Publisher: GEP

Place of Publication: Nottingham

We construct a static computable general equilibrium (CGE) model to quantify the endogenous productivity spillovers from foreign-invested firms to domestic firms, taking the Chinese economy as a case study. The coefficients of four spillover channels are estimated from econometric analysis. The simulations are conducted under two alternative market structures, namely perfect competition and monopolistic competition. Simulation results indicate that the spillover premia are positive in terms of national total output, GDP and welfare. The spillover effect is more prominent when the market structure is relatively monopolistic. FDI spillovers can also result in more product varieties produced by domestic enterprises, and can also help domestic enterprises increase their production scale.

This data was imported from Scopus:

Authors: Deng, Z., Falvey, R. and Blake, A.

Pages: 369-389

eISSN: 1467-8381

ISSN: 1351-3958

DOI: 10.1111/asej.12019

For the purposes of this study, we will construct a static monopolistically-competitive computable general equilibrium model to quantify the endogenous productivity spillovers from foreign and domestic firms, using the Chinese economy as a case study. Our simulation results indicate: (i) that the net spillover effects are positive in terms of national total output, GDP and welfare; (ii) that both state-owned and privately-owned firms benefit, but that private firms benefit more; (iii) that industries with large volumes of foreign direct investment (FDI) do not necessarily observe the largest spillover effects; and (iv) that the spillover effects become more prominent when the initial market structure is more concentrated. © 2013 East Asian Economic Association and Wiley Publishing Asia Pty Ltd.

This data was imported from Web of Science (Lite):

Authors: Deng, Z., Falvey, R. and Blake, A.

Pages: 369-389

eISSN: 1467-8381

ISSN: 1351-3958

DOI: 10.1111/asej.12019

The data on this page was last updated at 04:57 on June 24, 2019.