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Title: |
A Study on the Channels of Knowledge Spillover from Foreign Direct Investments to Chinese Agriculture Industry |
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Source: |
International Conference on Engineering and Business Management 2012(Part 5 Innovative Technology)
(pp 3665-3668)
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Author(s): |
Yuandi Wang, Executive Business School, Technical University of Denmark, Copenhagen, Denmark
Ying Li, Executive Business School, Technical University of Denmark, Copenhagen, Denmark |
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Abstract: |
There are different channels of knowledge spillover from direct foreign Investment (FDI). Based on a nonparametric Malmquist index approach, firstly, this paper evaluates the total factor productivity (TFP) of Chinese agriculture industry. The TFP is decomposed into two parts: the technical efficiency and the technical progress. Next, the impulse response model is also used to dynamically simulate the effects on technical efficiency and technical progress from FDI and the causality between the FDI and these two effects is conducted subsequently. Our finding indicates that the productivity of Chinese agriculture has been largely driven by the effect of technical progress. In general, there exists a weak knowledge spillover from FDI on Chinese agriculture industry. FDI knowledge spillover has inconsistent effects on the technical efficiency and the technical progress respectively. In the end, we suggest that in order to unlock the potential spillover from FDI to modernize Chinese agriculture there still requires more environment conditions and support from the
Chinese government.
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