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.

DOI: 10.1504/IJTM.2005.007332

International Journal of Technology Management, 2005 Vol.32 No.3/4, pp.246 - 263

Available online: 06 Jul 2005 *

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