Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/77695
Authors: 
Agarwal, Natasha
Milner, Chris
Riaño, Alejandro
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper 4313
Abstract: 
This paper examines whether credit constraints affect Chinese firms' absorption of productivity spillovers from foreign firms. Using firm-level data for 2001-2005, we find evidence of positive spillovers originating from FDI from countries other than Hong Kong, Macau and Taiwan for non-state owned Chinese firms operating in the same industry and province. Our main finding is that domestic firms operating in industries characterised by a greater reliance on external finance, our measure of credit constraints, enjoy lower (and even negative) spillovers from the activity of foreign-owned firms. This result is robust to the inclusion of a wide variety of other industry-level characteristics interacting with the activity of foreign firms.
Subjects: 
FDI spillovers
credit constraints
China
JEL: 
F23
G31
O10
O33
Document Type: 
Working Paper

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