This book provides an insightful exploration of whether foreign direct investment (FDI) can promote the productivity of domestic enterprises. The book is based on a series of dedicated research conducted in the context of the Chinese economy, which has been the largest FDI host among the developing economies since 1993.
The main themes of this book are (a) based on the latest literature and first-hand research, outlining possible mechanisms through which foreign direct investment could promote the productivity of domestic enterprises; (b) developing a comprehensive research framework to quantify the spillover effects with cutting-edge methodology; (c) constructing a decision support system for evaluating FDI policy reforms with advanced computer simulation techniques; (d) evaluating the broader impact of FDI spillovers on banking system and trade pattern.
The book examines topical economic issues in the contemporary world economy from innovative perspectives, namely, how the presence of multinational enterprises has been one of the most important microeconomic drivers for the Chinese economy, how foreign banks have helped to enable Chinese banking system survive the global financial crisis, and how the domestic enterprises have learned to do exports from multinational affiliates and have changed the landscape of U.S.-Asian trade. The book incorporates the latest development of economic theory as well as computational economics model.
Table of Contents
Part 1: Stylised Facts and Literature Review 1. Stylized Facts of FDI Inflow to China and Its Spillovers 2. A Review on Foreign Direct Investment and Productivity Spillovers Part 2: Econometric Analyses for Quantifying the Spillover Effects 3. The Interplay between Foreign and Domestic Enterprises: Firm-Level Analysis 4. What Do the Aggregate Data Tell Us? Industry-Level Analysis Part 3: A General Equilibrium Framework for Quantifying the Spillover Effects 5. Computable General Equilibrium Modelling 6. Data Compilations 7. A Benchmark CGE Model for the Chinese Economy and its Extensions 8. Magnitude and Pattern of Productivity Spillovers Part 4: Significant Impact of FDI Productivity Spillovers? 9. Swapping Market Access for Productivity Spillovers? An Assessment of 2008 Corporate 10. Why the Chinese Banking System Survived the Global Financial Crisis? The Role of WTO Accession and FDI Efficiency Spillovers 11. East Asian Insutry Transfer, FDI Productivity Spillovers and U.S.-China Trade Imbalance 12. Concluding Remarks
Dr Ziliang Deng is Assistant Professor at the School of Business, Renmin University of China. He possesses BA and MA degrees from Renmin University of China, Postgraduate Research Certificate from Nanyang Technological University (Singapore), and PhD degree from the University of Nottingham (UK). Dr Deng has taken various consultancy activities for the Ministry of Commerce (China), and has teaching experiences at Nanyang Technological University, the University of Nottingham, the University of Manchester, and Keele University (UK). This research conducted for this monograph is sponsored by UK-China Scholarships for Excellence, jointly funded by the Ministry of Education (China) and the Department for Business, Innovation and Skills (UK).
This is an important and timely contribution on the influence on Chinese enterprises of inward FDI
Chris Milner, Professor of International Economics, University of Nottingham
The literature review of FDI and productivity spillovers is impressive … The examination of practical applications of the model are clear, well-written and have a very good and insightful discussion…
In summary, this is a very good piece of work. It addresses an important issue for a very important world economy, and Deng shows a high degree of competence in using modern simulation (and econometric) modelling techniques in an impressive piece of applied work.
Dr Jeffery Round, Emeritus Reader, School of Business, University of Warwick