We review previous literature on productivity effects of FDI in China and find that the evidence of FDI spillovers on her economic growth rate is mixed. Take A. Marino (2000) and E-G Lim (2001) for example, they pointed out that it just happened conditionally. Thus due to the proof of its plausibility, China¡¦s experience may help underdeveloped countries fulfill their goals and become one of the most contentious issues.
Based on CH(1995), this paper presents a 3-sector R&D-based endogenous growth model in an open economy with human capital accumulation and the existing stocks of technology from MNCs as well as domestic industries. And the thread of thought is that the technology growth rate will arise if technological spillovers of FDI do act in domestic R&D sectors, and that will lead to the better development of economy. The solution satisfied to the competitive equilibrium conditions shows that long-run growth rate arises from the improvement of absorptive capability and higher human capital stock, while the relationships between technology gap and steady-state growth rate are uncertain.
Then, bottomed on the results of theoretical model and the existing information including Chinese 30 provincial level data for 1996-2004, this paper tests with econometric methods¡Ð panel data OLS model with fixed effect¡Ðand makes empirical analyses. In addition, absorptive capacity is weighted by human capital.
As the setting of empirical model, the major focuses are on how human capital, domestic R&D, and international technological spillovers affect long-run growth rate. And the main conclusion is that the steady-state growth rates depend positively on the stock of human capital, the investment of domestic R&D, and the effects of technological spillovers via FDI whether the absorptive capacity is considered or not. While the results also show that the stock of human capital is a definitive and appropriate index to the absorptive capacity and that Chinese provincial level productivity effects of FDI are strongly confirmed by this paper. However, there are still some hinder in China for the digestion of foreign technologies, thus in the future the authority should put more emphases on increasing human capital stock and stepping up self-innovated ability.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0622107-191623 |
| Date | 22 June 2007 |
| Creators | Chu, Yu-han |
| Contributors | Yi-Shing Shih, jai-Hsi Weng, Ming-Jang Weng |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0622107-191623 |
| Rights | not_available, Copyright information available at source archive |
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