PROGRESS IN GEOGRAPHY ›› 2014, Vol. 33 ›› Issue (12): 1614-1623.doi: 10.11820/dlkxjz.2014.12.004

• Orginal Article • Previous Articles     Next Articles

Spatial effects of foreign direct investment technology spillover and its changes: empirical study based on panel data of Chinese prefecture-level cities

Yingying JI1(), Qi GUO1, Canfei HE1,2()   

  1. 1. School of Urban and Environmental Sciences, Peking University, Beijing 100871, China
    2. Peking University-Lincoln Institute Center for Urban Development and Land Policy, Beijing 100871, China
  • Online:2014-12-19 Published:2014-12-19


Foreign direct investment (FDI) technology spillover is an important topic in China and abroad, but most research do not address the temporal change of such effects. This paper argues that there is a temporal dimension of the effect of FDI technology spillover. FDI effects on domestic enterprises change between spillover and crowding out over time. Using a prefecture level city panel dataset of the communication equipment, computer, and other electronic equipment manufacturing industry from 2003 to 2007, we made an empirical study on the dynamic process of FDI technology spillover and found that the process is a lying S curve: at the initial stage of FDI entering the host country, there was a significant crowding out effect. In 3 to 4 years after the initial stage, the effect gradual shifted to spillover. With time, spillover slowed and declined, eventually reached a point where there was no significant spillover or crowding out. In addition, the process of FDI technology spillover varied for domestic enterprises of different ownership types.

Key words: FDI technology spillover, temporal change of effect, threshold regression model, prefecture-level city panel data, China

CLC Number: 

  • F125.7