The productivity spillovers of foreign direct investment in China: a computable general equilibrium model
One of the most important aspects of foreign direct investment (FDI) is that it embodies advanced technologies and business practices which can spill over to domestic firms via various channels, e.g. labour mobility, input-output linkages, export of multinational affiliates, demonstration and compet...
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| Format: | Thesis (University of Nottingham only) |
| Language: | English |
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2009
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| Online Access: | https://eprints.nottingham.ac.uk/29397/ |
| _version_ | 1848793776794894336 |
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| author | Deng, Ziliang |
| author_facet | Deng, Ziliang |
| author_sort | Deng, Ziliang |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | One of the most important aspects of foreign direct investment (FDI) is that it embodies advanced technologies and business practices which can spill over to domestic firms via various channels, e.g. labour mobility, input-output linkages, export of multinational affiliates, demonstration and competition.
This research combines computable general equilibrium (CGE) modelling and econometric techniques to quantify FDI productivity spillovers. The research is conducted in the context of the Chinese economy.
A static lOl-sector CGE model is constructed to measure the endogenous productivity spillovers of FDI. Spillover effects are analysed under three different market structure assumptions, namely perfect competition, monopolistic competition with homogeneous firms, and monopolistic competition with heterogeneous firms.
The research results show that the presence of FDI productivity spillovers can generally improve the productivity and output level of domestic enterprises in China. Spillovers make foreign firms' total output decrease. But collectively, spillovers exert positive impact on national aggregate variables, i.e. GDP, total output and welfare. The market structure assumptions of monopolistic competition and firm heterogeneity provide more perspectives (e.g. product variety and scale) for this research than the assumption of perfect competition does.
A removal of preferential corporate income tax treatment on foreign enterprises can increase the output level of domestic enterprises and promote national welfare. From a dynamic perspective, it could also promote the productivity splllovers from foreign firms. |
| first_indexed | 2025-11-14T19:05:41Z |
| format | Thesis (University of Nottingham only) |
| id | nottingham-29397 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T19:05:41Z |
| publishDate | 2009 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-293972025-02-28T11:36:03Z https://eprints.nottingham.ac.uk/29397/ The productivity spillovers of foreign direct investment in China: a computable general equilibrium model Deng, Ziliang One of the most important aspects of foreign direct investment (FDI) is that it embodies advanced technologies and business practices which can spill over to domestic firms via various channels, e.g. labour mobility, input-output linkages, export of multinational affiliates, demonstration and competition. This research combines computable general equilibrium (CGE) modelling and econometric techniques to quantify FDI productivity spillovers. The research is conducted in the context of the Chinese economy. A static lOl-sector CGE model is constructed to measure the endogenous productivity spillovers of FDI. Spillover effects are analysed under three different market structure assumptions, namely perfect competition, monopolistic competition with homogeneous firms, and monopolistic competition with heterogeneous firms. The research results show that the presence of FDI productivity spillovers can generally improve the productivity and output level of domestic enterprises in China. Spillovers make foreign firms' total output decrease. But collectively, spillovers exert positive impact on national aggregate variables, i.e. GDP, total output and welfare. The market structure assumptions of monopolistic competition and firm heterogeneity provide more perspectives (e.g. product variety and scale) for this research than the assumption of perfect competition does. A removal of preferential corporate income tax treatment on foreign enterprises can increase the output level of domestic enterprises and promote national welfare. From a dynamic perspective, it could also promote the productivity splllovers from foreign firms. 2009 Thesis (University of Nottingham only) NonPeerReviewed application/pdf en arr https://eprints.nottingham.ac.uk/29397/1/517784.pdf Deng, Ziliang (2009) The productivity spillovers of foreign direct investment in China: a computable general equilibrium model. PhD thesis, University of Nottingham. Investments Foreign Industrial productivity Business enterprises China |
| spellingShingle | Investments Foreign Industrial productivity Business enterprises China Deng, Ziliang The productivity spillovers of foreign direct investment in China: a computable general equilibrium model |
| title | The productivity spillovers of foreign direct investment in China: a computable general equilibrium model |
| title_full | The productivity spillovers of foreign direct investment in China: a computable general equilibrium model |
| title_fullStr | The productivity spillovers of foreign direct investment in China: a computable general equilibrium model |
| title_full_unstemmed | The productivity spillovers of foreign direct investment in China: a computable general equilibrium model |
| title_short | The productivity spillovers of foreign direct investment in China: a computable general equilibrium model |
| title_sort | productivity spillovers of foreign direct investment in china: a computable general equilibrium model |
| topic | Investments Foreign Industrial productivity Business enterprises China |
| url | https://eprints.nottingham.ac.uk/29397/ |