Testing technology spillovers of FDI: a stochastic frontier approach

Journal Publication ResearchOnline@JCU
Sun, Sizhong
Abstract

This article examines the technology spillover of foreign direct investment (FDI) in Gansu China, using the stochastic frontier approach. Following a general to specific estimation strategy, we find that FDI does positively affect domestic firms’ technical efficiency if it is measured in terms of FDI invested firms’ output/employment share in the industry. In addition, firms’ R&D expense appears to play a positive role in the scale of the spillover, which however shall be interpreted with caution as it is not robust to hypothesis tests.

Journal

The Empirical economics letters

Publication Name

The Empirical Economics Letters

Volume

8

ISBN/ISSN

1681- 8997

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Issue

9

Pages Count

18

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The Empirical Economics Letters

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