Vertical FDI Spillover from Joint Venture to Host Country’s parent firm: Evidence from China
Available Online May 2019.
- https://doi.org/10.2991/icmete-19.2019.6How to use a DOI?
- Host country’s parent firm; Vertical FDI spillover; Total factor froductivity; Upstreamness
- 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.
- 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 -