2008•Cai-jing yanjiuRequires access

FDI, Industrial Agglomeration and Technology Progress: Evidence from Chinese Manufacturing Industries

Dianchun Jiang

Abstract

This paper simply discussed in theory about the relationship between FDI, industrial agglomeration and technology progress. Based upon these foundations, we examined the relationship between FDI and Chinese industrial agglomeration with panel data model, by setting up HHI index. Then using DEA and panel data model, we examined the effect of industrial agglomeration to Chinese TFP brought by FDI. In result, we find that FDI promotes the industrial agglomeration as well as technology progress of some industries, especially the high-tech industries, which can be regard as a new channel of FDI technology spillovers.

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Available abstract

Key concepts: Economies of agglomeration, Foreign direct investment, Panel data, Economic geography, Manufacturing, Economics, Industrial organization, Index (typography)