Proceedings of the 2019 International Conference on Management, Education Technology and Economics (ICMETE 2019)

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

Authors
Minrui Li
Corresponding Author
Minrui Li
Available Online May 2019.
DOI
https://doi.org/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.
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Proceedings
Part of series
Advances in Economics, Business and Management Research
Publication Date
May 2019
ISBN
978-94-6252-725-6
ISSN
2352-5428
DOI
https://doi.org/10.2991/icmete-19.2019.6How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

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
PB  - Atlantis Press
SP  - 23
EP  - 28
SN  - 2352-5428
UR  - https://doi.org/10.2991/icmete-19.2019.6
DO  - https://doi.org/10.2991/icmete-19.2019.6
ID  - Li2019/05
ER  -