Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of San Francisco
Working Paper Series
FDI spillovers and firm ownership in China: labor markets and backward linkages
Galina Hale
Cheryl Long
Abstract

Using firm–level data, we find that the presence of foreign firms in China is positively associated with the performance of domestically owned private firms but is negatively associated with the performance of state–owned enterprises (SOEs). In particular, we find: (1) the presence of foreign direct investment (FDI) is associated with larger differences in the wages and the quality of skilled workers between SOEs and private firms; and, (2) FDI presence is positively associated with private firms’ sales to foreign firms and foreign consumers, but not with the sales of SOEs. We argue that these differences could be due to the fact that private firms have more flexible wage and personnel policies, which allows them to attract talent that facilitates positive FDI spillovers.


Download Full text
Cite this item
Galina Hale & Cheryl Long, FDI spillovers and firm ownership in China: labor markets and backward linkages, Federal Reserve Bank of San Francisco, Working Paper Series 2006-25, 2006.
More from this series
JEL Classification:
Subject headings:
Keywords: Investments; Foreign ; China
For corrections, contact Noah Pollaczek ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal