TITLE:
Spatial Distribution of Foreign Direct Investment and Productivity Growth in Less Developed Regions of China
AUTHORS:
Yanqing Jiang
KEYWORDS:
Foreign Direct Investment, Productivity, Convergence, Spillover Effect
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.4 No.11,
November
20,
2014
ABSTRACT: This study examines how the spatial
distribution of foreign direct investment (FDI) affects productivity growth in
less developed regions of China. A systematic theoretical framework is set up
concerning the potential effects of FDI capital via different channels.
Following the theoretical framework, this study presents empirical evidence
showing that FDI spillovers from the developed regions play a crucial role in
enhancing productivity growth in the less developed regions. Empirical results
also show that local FDI spillovers in less developed regions promote local
productivity growth. In addition, FDI spillovers from less developed regions
are not shown to have a significant effect on productivity growth in other less
developed regions.