Foreign Direct Investment, Technology Diffusion, and Host Country Productivity Growth

Lee, Minsoo; Lee, Joonhyung; Kim, Hyuk Hwang

doi:10.2139/ssrn.1940157

Cited by 8 publications

(10 citation statements)

References 54 publications

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“…Going forward, we use an elasticity of 1.4. According to the coefficient suggested by Lee et al (2011), our forecasted import growth implies a contribution to TFP growth of 0.5% in 2015, falling to 0.3% by 2030.…”

Section: Forecasting Total Factor Productivity Growthmentioning

confidence: 89%

“…Given the elasticity of TFP growth with respect to FDI growth proposed by Lee et al. () (0.0218), this profile of FDI growth adds 0.13 percentage points to TFP growth in the near term, slowing to 0.11 percentage points by 2030.…”

Section: Forecasting Trend Output Growth To 2030mentioning

confidence: 91%

“…In estimating the contribution of FDI and imports to TFP growth, we rely on work by Lee et al. () that suggests that a 10% increase in the real FDI stock raises TFP growth by 2.2 percentage points and that real import growth of 10% increases TFP growth by 0.7 percentage points. Domestic spending on R&D can also promote TFP through technology transfer.…”

Section: Key Drivers Of Chinese Trend Output Growth Over Historymentioning

confidence: 99%

“…This literature suggests that productivity is positively related to foreign direct investment (FDI), openness, R&D expenditures, and sectoral labour shifts. TFP growth can be related to growth in the stock of FDI and to import growth, because both are associated with technology spillovers (Lee, Lee, and Kim, 2011). In estimating the contribution of FDI and imports to TFP growth, we rely on work by Lee et al (2011) that suggests that a 10% increase in the real FDI stock raises TFP growth by 2.2 percentage points and that real import growth of 10% increases TFP growth by 0.7 percentage points.…”

Section: Total Factor Productivitymentioning

confidence: 99%

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How fast can China grow? The Middle Kingdom's prospects to 2030

Bailliu

Kruger

Toktamyssov

et al. 2017

Pacific Economic Review

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Given its size and importance for global commodity markets, the question of how fast China can grow over the medium term is an important one. Using a Cobb–Douglas production function, we decompose the growth of trend GDP into those of the capital stock, labour, human capital and total factor productivity (TFP) and then forecast trend output growth out to 2030 using a bottom‐up approach based on forecasts that we build for each one of these factors. Our paper distinguishes itself from existing work in that we construct a forecast of Chinese TFP growth based on the aggregation of forecasts of its key determinants. In addition, our analysis is based on a carefully constructed estimate of the Chinese productive capital stock and a measure of human capital (based on Chinese wage survey data) that better reflects the returns to education in China. Our results suggest that Chinese GDP growth will slow from around 7% currently to approximately 5% by 2030, consistent with a gradual rebalancing of the Chinese economy characterized by a decline in the investment rate. Moreover, our findings underscore the growing importance of TFP growth as a driver of Chinese growth.

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Section: Forecasting Total Factor Productivity Growthmentioning

confidence: 89%

Section: Forecasting Trend Output Growth To 2030mentioning

confidence: 91%

Section: Key Drivers Of Chinese Trend Output Growth Over Historymentioning

confidence: 99%

Section: Total Factor Productivitymentioning

confidence: 99%

See 2 more Smart Citations

How fast can China grow? The Middle Kingdom's prospects to 2030

Bailliu

Kruger

Toktamyssov

et al. 2017

Pacific Economic Review

View full text Add to dashboard Cite

show abstract

“…Lai et al [30] demonstrated the crucial role of technology absorption capacity on technology spillover effects and brand effect was deemed as the major element of technology spillover in their research. By assessing the impacts of product imports on total factor productivity, Lee et al [31] found positive impacts of FDI on less developed countries and more prevalent impacts on developed countries. In this paper, we focus on three aspects of FDI renewable energy technology spillover: foreign capital investment, product import and brand effect.…”

Section: Technology Spillover Effectsmentioning

confidence: 99%

Impacts of FDI Renewable Energy Technology Spillover on China’s Energy Industry Performance

Liu

Yang

et al. 2016

Sustainability

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Environmental friendly renewable energy plays an indispensable role in energy industry development. Foreign direct investment (FDI) in advanced renewable energy technology spillover is promising to improve technological capability and promote China's energy industry performance growth. In this paper, the impacts of FDI renewable energy technology spillover on China's energy industry performance are analyzed based on theoretical and empirical studies. Firstly, three hypotheses are proposed to illustrate the relationships between FDI renewable energy technology spillover and three energy industry performances including economic, environmental, and innovative performances. To verify the hypotheses, techniques including factor analysis and data envelopment analysis (DEA) are employed to quantify the FDI renewable energy technology spillover and the energy industry performance of China, respectively. Furthermore, a panel data regression model is proposed to measure the impacts of FDI renewable energy technology spillover on China's energy industry performance. Finally, energy industries of 30 different provinces in China based on the yearbook data from 2005 to 2011 are comparatively analyzed for evaluating the impacts through the empirical research. The results demonstrate that FDI renewable energy technology spillover has positive impacts on China's energy industry performance. It can also be found that the technology spillover effects are more obvious in economic and technological developed regions. Finally, four suggestions are provided to enhance energy industry performance and promote renewable energy technology spillover in China.

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