Foreign Direct Investment, Access to Finance, and Innovation Activity in Chinese Enterprises
A recent, comprehensive database is used to investigate the link between inward foreign direct investment (FDI) and innovation activity in China. The results of the analysis suggest that private and collectively owned firms with foreign capital participation and those with good access to domestic ba...
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World Bank
2012
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| Online Access: | http://hdl.handle.net/10986/4484 |
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okr-10986-44842021-04-23T14:02:18Z Foreign Direct Investment, Access to Finance, and Innovation Activity in Chinese Enterprises Girma, Sourafel Gong, Yundan Görg, Holger access to credit access to finance bank bank loans capital credit credit opportunities economic reforms enterprises foreign direct investment A recent, comprehensive database is used to investigate the link between inward foreign direct investment (FDI) and innovation activity in China. The results of the analysis suggest that private and collectively owned firms with foreign capital participation and those with good access to domestic bank loans innovate more than other firms do. Among enterprises not owned by the state, inward FDI at the sectoral level is positively associated with domestic innovative activity only among firms that engage in their own research and development or that have good access to domestic finance. At the sector level the effect of inward FDI into technology transfer is distinguished from the effect on domestic credit opportunities. FDI affecting credit is of little significance for state-owned enterprises and is independent of their access to finance. In contrast, better access to credit is an important channel through which FDI affects the innovation of domestic private and collectively owned enterprises. 2012-03-30T07:12:37Z 2012-03-30T07:12:37Z 2008-05-30 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/4484 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank World Bank Journal Article East Asia and Pacific China |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| topic |
access to credit access to finance bank bank loans capital credit credit opportunities economic reforms enterprises foreign direct investment |
| spellingShingle |
access to credit access to finance bank bank loans capital credit credit opportunities economic reforms enterprises foreign direct investment Girma, Sourafel Gong, Yundan Görg, Holger Foreign Direct Investment, Access to Finance, and Innovation Activity in Chinese Enterprises |
| geographic_facet |
East Asia and Pacific China |
| description |
A recent, comprehensive database is used to investigate the link between inward foreign direct investment (FDI) and innovation activity in China. The results of the analysis suggest that private and collectively owned firms with foreign capital participation and those with good access to domestic bank loans innovate more than other firms do. Among enterprises not owned by the state, inward FDI at the sectoral level is positively associated with domestic innovative activity only among firms that engage in their own research and development or that have good access to domestic finance. At the sector level the effect of inward FDI into technology transfer is distinguished from the effect on domestic credit opportunities. FDI affecting credit is of little significance for state-owned enterprises and is independent of their access to finance. In contrast, better access to credit is an important channel through which FDI affects the innovation of domestic private and collectively owned enterprises. |
| format |
Journal Article |
| author |
Girma, Sourafel Gong, Yundan Görg, Holger |
| author_facet |
Girma, Sourafel Gong, Yundan Görg, Holger |
| author_sort |
Girma, Sourafel |
| title |
Foreign Direct Investment, Access to Finance, and Innovation Activity in Chinese Enterprises |
| title_short |
Foreign Direct Investment, Access to Finance, and Innovation Activity in Chinese Enterprises |
| title_full |
Foreign Direct Investment, Access to Finance, and Innovation Activity in Chinese Enterprises |
| title_fullStr |
Foreign Direct Investment, Access to Finance, and Innovation Activity in Chinese Enterprises |
| title_full_unstemmed |
Foreign Direct Investment, Access to Finance, and Innovation Activity in Chinese Enterprises |
| title_sort |
foreign direct investment, access to finance, and innovation activity in chinese enterprises |
| publisher |
World Bank |
| publishDate |
2012 |
| url |
http://hdl.handle.net/10986/4484 |
| _version_ |
1764391564104171520 |