Is China different? A meta-analysis of the effects of foreign direct investment on domestic firms

Journal of Chinese Economic and Business Studies

Volumn 8, Issue 4, 2010, Pages 353-371

  Ljungwall, Christer ^a   Tingvall, Patrik Gustavsson ^a  

^a STOCKHOLM SCHOOL OF ECONOMICS   (Sweden)

Author keywords

China; Economic growth; Foreign direct investment; Meta analysis

Indexed keywords

EID: 79957461453     PISSN: 14765284     EISSN: 14765292     Source Type: Journal    
DOI: 10.1080/14765284.2010.513175     Document Type: Article

References (87)

1. Aitken, B.J., and A.E. Harrison. 1999. Do domestic firms benefit from direct foreign investment? Evidence from Venezuela. American Economic Review 89, no. 3: 605-18.
2. Akinlo, A.E. 2004. Foreign direct investment and growth in Nigeria: An empirical investigation. Journal of Policy Modeling 26: 627-39.
3. Archanun, K. 2003. Foreign trade regimes and the FDI-growth nexus: A case study of Thailand. The Journal of Development Studies 40, no. 2: 55-69.
4. Archanun, K. 2006. Foreign direct investment and technology spillover: A cross-industry analysis of Thai manufacturing. World Development 34, no. 3: 541-56.
5. Asheghian, P. 2004. Determinants of economic growth in the United States: The role of foreign investments. The International Trade Journal XVIII, no. 1: 63-83.
6. Ashenfelter, O., C. Harmon, and H. Ooesterbeek. 1999. A review of estimates of the schooling earnings relationship with test for publication bias. Labor Economics 6: 453-70.
7. Asparouhov, T., and B. Muthén. 2009. Multilevel regression mixture analysis. Journal of the Royal Statistical Society 172, no. 3: 639-57.
8. Baliamoune-Lutz, M. 2004. Does FDI contribute to economic growth? Business Economics April: 49-56.
9. Banga, R. 2001. Do productivity spillover from Japanese and US FDI differ? Conference paper, Australia South-Asia Research Centre (ASARC).
10. Bende-Nabende, A., and J. Ford. 1998. FDI policy adjustment and endogenous growth: Multiplier effects from a small dynamic model for Taiwan, 1959-1995. World Development 26, no. 7: 1315-30.
11. Bende-Nabende, A., J. Ford, and J. Slater. 2001. FDI, regional economic integration and endogenous growth: Some evidence from Southeast Asia. Pacific Economic Review 6, no. 3: 383-99.
12. Berthélemy, J.C., and S. Démurger. 2000. Foreign direct investment and economic growth: Theory and application to China. Review of Development Economics 4, no. 2: 140-55.
13. Blalock, G., and P.J. Gertler. 2002. Firm capabilities and technology adoption: Evidence from foreign direct investment in Indonesia. Working paper, Department of Applied Economics and Management, Cornell University, Ithaca, NY.
14. Blalock, G., and P.J. Gertler. 2005. Foreign direct investment and externalities: The case for public intervention. In Does foreign direct investment promote development? eds. T. Moran, E.M. Graham and M. Blomströ m. Institute for International Economics.
15. Blin, M., and B. Ouattara. 2004. Foreign direct investment and economic growth in Mauritius: Evidence from bounds test cointegration. DP. No. 0418, Manchester School of Social Science.
16. Blomström, M., and F. Sjöholm. 1998. Technology transfer and spillovers: Does local participation with multinationals matter. NBER Working paper Series, No. 6816.
17. Bolbol, A.A., and A.T. Sadik. 2001. Capital flows, FDI, and technology spillovers: Evidence from Arab countries. World Development 29, no. 12: 2111-25.
18. Buckley, P.J., J. Clegg, and C. Wang. 2004. The relationship between inward foreign direct investment and the performance of domestically-owned Chinese manufacturing industry. Multinational Business Review 12, no. 3: 23-40.
19. Buckley, P.J., J. Clegg, and C. Wang. 2007. The impact of foreign ownership, local ownership and industry characteristics on spillover benefits from foreign direct investment in China. International Business Review 16, no. 2: 142-58.
20. Bwalya, S.M. 2006. Foreign direct investment and technology spillovers: Evidence from panel data analysis of manufacturing firms in Zambia. Journal of Development Economics 81: 514-26.
21. Card, D., and A. Krueger. 1995. Time-series in minimum-wage studies: A meta-analysis. American Economic Review 85, no. 2: 238-43.
22. Chakraborty, C., and P. Basu. 2002. Foreign direct investment and growth in India: A cointegration approach. Applied Economics 34: 1061-73.
23. Chandran, V.G.R., and G. Krishnan. 2008. Foreign direct investment and manufacturing growth: The Malaysian experience. International Business Research 1, no. 3: 83-90.
24. Cohen, W.M., and D.A. Levinthal. 1989. Innovation and learning: Two faces of R&D. Economic Journal 99: 569-96.
25. Crespo, N., and M.P. Fontoura. 2007. FDI spillovers at the regional level: Evidence from Portugal. Working Paper 028, School of Economics and Management (ISEG), Department of Economics at the Technical University of Lisbon.
26. Crespo, N., M.P. Fontoura, and I. Proenca. 2002. Productivity spillovers from multinational corporations in the Portuguese case: Evidence from short time period panel data. Working Paper 06, School of Economics and Management (ISEG), Department of Economics at the Technical University of Lisbon.
27. Diebel, D., and R. Wooster. 2006. Productivity spillovers from foreign direct investment in developing countries: A meta-regression analysis. Conference paper, Department of Economics, University of Arkansas.
28. Dimelis, S.P. 2005. Spillovers from foreign direct investment and firm growth: Technological, financial and market structure effects. International Journal of the Economics of Business 12, no. 1: 85-104.
29. Driffield, N., M. Munday, and A. Roberts. 2002. Foreign direct investment, transactions linkages, and the performance of the domestic sector. International Journal of the Economics of Business 9: 335-51.
30. Evenett, S.J., and A. Voicu. 2001. Picking winners or creating them? Revisiting the benefits of FDI in the Czech Republic? MIMEO, The World Bank.
31. Fan, X. 2002. Technological spillovers from foreign direct investment - A survey. ERD Working Paper Series No. 33.
32. Fedderke, J.W., and A.T. Romm. 2006. Growth impact and determinants of foreign direct investment into South-Africa, 1956-2003. Economic Modelling 23: 738-60.
33. Giorgioni, G., P.A. Siler, and P. Zheng. 2006. Sustaining growth in China's regions through FDI. World Review of Entrepreneurship, Management and Sustainable Development 6, no. 1/2: 4-22.
34. Girma, S., H. Görg, and M. Pisu. 2008. Exporting, linkages and productivity spillovers from foreign direct investment. Canadian Journal of Economics 41, no. 1: 320-40.
35. Globerman, S. 1979. Foreign direct investment and spillover efficiency benefits in Canadian manufacturing industries. The Canadian Journal of Economics 12, no. 1: 42-56.
36. Görg, H., and E. Strobl. 2001. Multinational companies and productivity spillovers: A metaanalysis with a test for publication bias. The Economic Journal 111, no. 475: 723-39.
37. Haskel, J.E., S.C. Pereira, and S.M. Slaughter. 2007. Does inward foreign investment boost the productivity of domestic firms? The Review of Economics and Statistics 89, no. 3: 482-96.
38. Hox, J.J., and C.J. Maas. 2004. Robustness issues in multilevel regression analysis. Statistica Neerlandica 58, no. 2: 127-37.
39. Hu, A.Y., and S.Y. Tong. 2003. Do domestic firms benefit from direct foreign investment? Initial evidence from Chinese manufacturing. MIMEO: Conference paper, 'China's Economic Geography and Regional Development'.
40. Kalaian, H.A., and S.W. Raudenbush. 1996. A multivariate mixed linear model for metaanalysis. Psychological methods 1, no. 3: 227-35.
41. Kathuria, V. 2002. Liberalisation, FDI, and productivity spillovers - an analysis of Indian manufacturing firms. Oxford Economic Papers 54: 688-718.
42. Khaliq, A. 2007. Foreign direct investment and economic growth: Empirical evidence from sectoral data in Indonesia. Working Paper 07-26. Department of Economics, University of Hawaii at Manoa.
43. Kokko, A. 1994. Technology, market characteristics, and spillovers. Journal of Development Economics 43: 279-93.
44. Kokko, A. 1996. Productivity spillovers from competition between local firms and foreign affiliates. Journal of International Development 8, no. 4: 517-30.
45. Kokko, A., K. Tansini, and M.C. Zejan. 1996. Local technological capability and productivity spillovers from FDI in the Uruguayan manufacturing sector. Journal of Development Studies 32, no. 4: 602-11.
46. Konings, J. 2003. The effects of foreign investment on domestic firms: Evidence from firm level panel data in emerging economies. Economics of Transition 9, no. 3: 619-33.
47. Lee, H.H., and H.B. Tan. 2006. Technology transfer, FDI and economic growth in the ASEAN region. Journal of the Asia Pacific Economy 11, no. 4: 394-410.
48. Liu, Z. 2008. Foreign direct investment and technology spillovers: Theory and evidence. Journal of Development Economics 85: 176-93.
49. Madariaga, N., and S. Poncet. 2007. FDI in Chinese cities: Spillovers and impact on growth. The World Economy 30, no. 5: 837-62.
50. Marcin, K. 2007. How does FDI inflow affect productivity of domestic firms? The role of horizontal and vertical spillovers, absorptive capacity and competition. MPRA paper No. 8673, Munich Personal RePEc Archive.
51. Marin, A., and S. Narula. 2005. Exploring the relationship between direct and indirect spillovers from FDI in Argentina. Memorandum series, 2005-024. Maastricht Economic Research Institute on Innovation and Technology (MERIT).
52. Marwah, K., and A. Tavakoli. 2004. The effects of foreign capital and imports on economic growth: Further evidence from four Asian Countries (1970-1998). Journal of Asian Economics 15, no. 2: 399-413.
53. Meyer, K., and E. Sinani. 2004. Spillovers of technology transfer from FDI: The case of Estonia. Journal of Comparative Economics 32, no. 3: 445-66.
54. Meyer, K.E., and E. Sinani. 2009. When and where does foreign direct investment generate positive spillovers? A meta-analysis. Journal of International Business Studies 40, no. 7: 1075-94.
55. Mookerjee, R. 2006. A meta-analysis of the export growth hypothesis. Economics Letters 91: 395-401.
56. Mullen, J.K., and M. Williams. 2005. Foreign direct investment and regional economic performance. Kyklos 58, no. 2: 265-82.
57. Naughton, B. 2006. The Chinese economy, transitions and growth. Cambridge, MA: The MIT Press.
58. Obwona, M.B. 2001. Determinants of FDI and their impact on economic growth in Uganda. African Development Review 13, no. 1: 46-81.
59. Phillips, J.M. 1994. Farmer education and farmer efficiency: A meta-analysis. Economic Development and Cultural Change 43: 149-55.
60. Phillips, J.M., and E.P. Gross. 1995. The effect of state and local taxes on economic development: A meta-analysis. Southern Economic Journal 62: 320-33.
61. Raudenbush, S.W. 1993. A crossed random effects model for unbalanced data with applications in cross-sectional longitudinal research. Journal of Educational and Behavioral Statistics 18, no. 4: 321-49.
62. Salehizadeh, M. 2005. Foreign direct investment inflows and the US economy: An empirical analysis. Economic Issues 10, no. 2: 29-50.
63. Searle, S.R., G. Casella, and C.E. McCulloch. 1992. Variance components. New York: Wiley.
64. Shujie, Y. 2006. On economic growth, FDI and exports in China. Applied Economics 38: 339-51.
65. Sjöholm, F. 1999a. Productivity growth in Indonesia: The role of regional characteristics and direct foreign investment. Economic Development and Cultural Change 47, no. 3: 559-84.
66. Sjöholm, F. 1999b. Technology gap, competition and spillovers from direct foreign investment: Evidence from establishment data. The Journal of Development Studies 36, no. 1: 53-73.
67. Smarynska B. 2002. Spillovers from foreign direct investment through backward linkages: Does technology gap matter? Mimeo, World Bank.
68. Smith, V.K., and J. Huang. 1995. Can markets value air quality? A meta-analysis of hedeonic property value models. Journal of Political Economy 103: 209-27.
69. Stanley, T.D. 1989. New wine in old bottles: A meta-analysis of Ricardian equivalence. Southern Economic Journal 64: 713-27.
70. Stanley, T.D., and S.B. Jarrell. 1989. Meta-regression analysis: A quantitative method of literature surveys. Journal of Economic Surveys 3, no. 2: 161-70.
71. Stehrer, R., and J. Woerz. 2005. Attract FDI! - A universal golden rule? Empirical evidence for Europe and Asia. The Vienna Institute for International Economic Studies, October.
72. Stram, D.O., and J.W. Lee. 1994. Variance components testing in the longitudinal mixed effect model. Biometrics 50: 1171-7.
73. Sun, H., and A. Parikh. 2001. Exports, inward foreign direct investment (FDI) and regional economic growth in China. Regional Studies 35, no. 3: 187-96.
74. Thangavelu, S.M., and S.S. Pattnayak. 2006. Linkages and spillovers from foreign ownership in the Indian pharmaceutical firms. SCAPE Working Paper Series, No. 2006/05. Singapore Centre for Applied and Policy Economics.
75. Thuy, L.T. 2007. Does foreign direct investment have an impact on the growth of labor productivity of Vietnamese domestic firms. RIETI Discussion Paper Series 07-E-021.
76. Tian, X., S. Lin, and V. Lo. 2004. Foreign direct investment and economic performance in transition economies: Evidence from China. Post-Communist Economies 16, no. 4: 497-510.
77. Verbeke, G., and G. Molenberghs. 2000. Linear mixed models for longitudinal data. New York: Springer.
78. Vinish, K. 2001. Foreign firms, technology transfer and knowledge spillovers to Indian manufacturing firms: A stochastic frontier analysis. Applied Economics 33: 625-42.
79. Wei, Y., and X. Liu. 2003. Productivity spillovers among OECD, diaspora and indigenous firms in Chinese manufacturing. WP 2003/008, Lancaster University Management School.
80. Wei, Y., and X. Liu. 2006. Productivity spillovers from R&D, exports and FDI in China's manufacturing sector. Journal of International Business Studies 37: 544-57.
81. Wen, M. 2007. Foreign direct investment, regional geographical market conditions, and regional development: A panel study of China. Economics of Transition 15, no. 1: 125-41.
82. Wooster, R.B., and D.S. Diebel. 2010. Productivity spillovers from foriegn direct investment in developing countries: A meta-regression analysis. Review of Development Economics 14, no. 3: 640-55.
83. Yao, S. 2006. On economic growth, FDI and exports in China. Applied Economics 38: 339-51.
84. Zhang, H.Z. 2001. How does FDI affect economic growth in China? Economics of Transition 9, no. 3: 679-93.
85. Zhang, K. 2006. Foreign direct investment and economic growth in China: A panel study for 1999-2001. Department of Economics, Illinois State University, Conference paper.
86. Zhang, Q., and B. Felmingham. 2002. The role of FDI, exports and spillover effects in the regional development of China. The Journal of Development Studies 38, no. 4: 157-78.
87. Zhao, C., and J. Du. 2007. Causality between FDI and economic growth in China. The Chinese Economy 40, no. 6: 68-82.