✦ LIBER ✦

The impact of foreign direct investment on labour productivity in the Chinese electronics industry

✍ Scribed by Xiaming Liu; David Parker; Kirit Vaidya; Yingqi Wei

Publisher: Elsevier Science
Year: 2001
Tongue: English
Weight: 91 KB
Volume: 10
Category: Article
ISSN: 0969-5931
DOI: 10.1016/s0969-5931(01)00024-5

No coin nor oath required. For personal study only.

✦ Synopsis

Foreign direct investment (FDI) may have a positive impact on labour productivity in recipient industries through direct introduction of capital, technology and management skills and indirectly through spillover effects on domestic firms. This study uses a model intended to examine the overall effects of inward FDI in the Chinese electronics industry. Official data are used for 41 sub-sectors of the industry in 1996 and 1997 having differing levels of FDI. Labour productivity is modelled as dependent on the degree of foreign presence in the industry and other variables, namely capital intensity, human capital and firm size for scale factors. The econometric results suggest that foreign presence in the industry is associated with higher labour productivity.

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