Title: Industry technology performance of manufacturing FDI: micro-level evidence from joint ventures in China
Authors: Linda Fung-Yee Ng, Chyau Tuan
Addresses: Department of Decision Sciences and Managerial Economics, Faculty of Business Administration, The Chinese University of Hong Kong, Hong Kong, PR China. ' Department of Decision Sciences and Managerial Economics, Faculty of Business Administration, The Chinese University of Hong Kong, Hong Kong, PR China
Abstract: Recent literature showed that foreign direct investment (FDI) especially from developed countries was claimed to facilitate technology flows into the recipient country via technology upgrade and R&D spillover activities. However, little research has been conducted at the disaggregate (firm–industry) level through which technology is transferred. This research investigates the industry technology performance of joint ventures in China and its sources and how structural (institutional) factors of these foreign investments would affect technology progress using micro- (firm-) level data. Research results showed that FDI by type of foreign ownership affected TFP progress and growth while capital intensity and its nested effect with market share, were also important in enhancing production efficiency. Industry characteristics also made a difference. Implications derived for FDI absorption on the part of the recipient country and managerial investment decisions of foreign firms in China were discussed.
Keywords: China; Guangdong; joint ventures; manufacturing FDI; production efficiency; technology transfer; TFP; foreign direct investment; technology performance; technology management; technology flows; innovation; total factor productivity.
International Journal of Technology Management, 2005 Vol.32 No.3/4, pp.246 - 263
Published online: 06 Jul 2005 *Full-text access for editors Access for subscribers Purchase this article Comment on this article