Vertical FDI Spillover from Joint Venture to Host Country’s parent firm: Evidence from China

DOI

10.2991/icmete-19.2019.6How to use a DOI?

Keywords

Host country’s parent firm; Vertical FDI spillover; Total factor froductivity; Upstreamness

Abstract

Compared with earlier literature focusing on domestic firm in macro level or industry level, this study investigates the FDI spillover from joint venture to host country’s parent firm in firm level, especially vertical spillover. By matching two sets of Chinese firm-level comprehensive database and applying upstreamness developed by Antràs et al. (2012), we can identify the specific joint venture and host country’s parent firm of the spillover and their positions in value chain. Finally, this study finds that there is the FDI spillover from joint venture to host country’s parent firm. The farther the host country’s parent firm is located downstream of the JV in value chain, the higher the spillover effect is. Furthermore, given the fixed “distance” between positions of those two firms in value chain, host country’s parent firm is more productive with higher upstreamness in backward linkage. On the contrary, it is more productive with lower upstreamness in forward linkage.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Minrui Li
PY  - 2019/05
DA  - 2019/05
TI  - Vertical FDI Spillover from Joint Venture to Host Country’s parent firm: Evidence from China
BT  - Proceedings of the 2019 International Conference on Management, Education Technology and Economics (ICMETE 2019)
PB  - Atlantis Press
SP  - 23
EP  - 28
SN  - 2352-5428
UR  - https://doi.org/10.2991/icmete-19.2019.6
DO  - 10.2991/icmete-19.2019.6
ID  - Li2019/05
ER  -