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On Chinese Enterprises′ Technology Sourcing FDI

Yu Fang

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Abstract

Through correlation analysis between technology sourcing FDI and total factor productivity in China from 1990 to 2007,this paper tests the existence of technology sourcing FDI and its role on domestic technology progress through empirical methods.The results show that the overall amount of RD investment overflowed from abroad into China is increasing,but the technology sourcing FDI from China hindered increase of Chinese total factor productivity instead of making a positive role.Because the development of Chinese technology sourcing FDI is still in its infancy,we can not deny its promoting role on technological progress for problems and shortcomings.

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What this paper is about

Through correlation analysis between technology sourcing FDI and total factor productivity in China from 1990 to 2007,this paper tests the existence of technology sourcing FDI and its role on domestic technology progress through empirical methods.The results show that the overall amount of RD investment overflowed from abroad into China is increasing,but the technology sourcing FDI from China hindered increase of Chinese total factor productivity instead of making a positive role.Because the development of Chinese technology sourcing FDI is still in its infancy,we can not deny its promoting role on technological progress for problems and shortcomings.

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Available abstract

Through correlation analysis between technology sourcing FDI and total factor productivity in China from 1990 to 2007,this paper tests the existence of technology sourcing FDI and its role on domestic technology progress through empirical methods.The results show that the overall amount of RD investment overflowed from abroad into China is increasing,but the technology sourcing FDI from China hindered increase of Chinese total factor productivity instead of making a positive role.Because the development of Chinese technology sourcing FDI is still in its infancy,we can not deny its promoting role on technological progress for problems and shortcomings.

Key concepts: Foreign direct investment, China, Productivity, Business, Investment (military), Total factor productivity, International trade, Industrial organization

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