Credit constraints and spillovers from foreign firms in China

This paper examines whether credit constraints affect Chinese firms’ absorption of productivity spillovers originating from the activity of foreign-owned firms. Using firm-level data for 2001–2005, we find evidence of positive spillovers originating from foreign-owned firms from countries other than...

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Main Authors: Agarwal, Natasha, Milner, Chris, Riaño, Alejandro
Format: Article
Published: Elsevier 2014
Subjects:
Online Access:https://eprints.nottingham.ac.uk/29843/
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author Agarwal, Natasha
Milner, Chris
Riaño, Alejandro
author_facet Agarwal, Natasha
Milner, Chris
Riaño, Alejandro
author_sort Agarwal, Natasha
building Nottingham Research Data Repository
collection Online Access
description This paper examines whether credit constraints affect Chinese firms’ absorption of productivity spillovers originating from the activity of foreign-owned firms. Using firm-level data for 2001–2005, we find evidence of positive spillovers originating from foreign-owned firms from countries other than Hong Kong, Macau and Taiwan for non-state owned Chinese firms operating in the same industry and province. Using an index of external finance dependence to measure credit constraints, we find that only non-state-owned firms operating in industries with external finance dependence below the index median exhibit significantly positive spillovers from the activity of foreign firms.
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institution University of Nottingham Malaysia Campus
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publishDate 2014
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spelling nottingham-298432020-05-04T16:43:09Z https://eprints.nottingham.ac.uk/29843/ Credit constraints and spillovers from foreign firms in China Agarwal, Natasha Milner, Chris Riaño, Alejandro This paper examines whether credit constraints affect Chinese firms’ absorption of productivity spillovers originating from the activity of foreign-owned firms. Using firm-level data for 2001–2005, we find evidence of positive spillovers originating from foreign-owned firms from countries other than Hong Kong, Macau and Taiwan for non-state owned Chinese firms operating in the same industry and province. Using an index of external finance dependence to measure credit constraints, we find that only non-state-owned firms operating in industries with external finance dependence below the index median exhibit significantly positive spillovers from the activity of foreign firms. Elsevier 2014-02-12 Article PeerReviewed Agarwal, Natasha, Milner, Chris and Riaño, Alejandro (2014) Credit constraints and spillovers from foreign firms in China. Journal of Banking & Finance, 48 . pp. 261-275. ISSN 0378-4266 Foreign direct investment; Knowledge spillovers; Credit constraints; China http://www.sciencedirect.com/science/article/pii/S0378426614000508 doi:10.1016/j.jbankfin.2014.01.036 doi:10.1016/j.jbankfin.2014.01.036
spellingShingle Foreign direct investment; Knowledge spillovers; Credit constraints; China
Agarwal, Natasha
Milner, Chris
Riaño, Alejandro
Credit constraints and spillovers from foreign firms in China
title Credit constraints and spillovers from foreign firms in China
title_full Credit constraints and spillovers from foreign firms in China
title_fullStr Credit constraints and spillovers from foreign firms in China
title_full_unstemmed Credit constraints and spillovers from foreign firms in China
title_short Credit constraints and spillovers from foreign firms in China
title_sort credit constraints and spillovers from foreign firms in china
topic Foreign direct investment; Knowledge spillovers; Credit constraints; China
url https://eprints.nottingham.ac.uk/29843/
https://eprints.nottingham.ac.uk/29843/
https://eprints.nottingham.ac.uk/29843/