Determinants of foreign direct investment backward productivity spillovers: A meta-analysis

Abstract

Drawing on a unique dataset of 694 estimates from 24 studies on backward productivity spillovers from foreign direct investment in China, our prime objective is to investigate the determinants of such spillovers using a Bayesian model averaging–based meta-analysis. Our results suggest that backward spillovers vary across firm attributes, namely the ownership structure of foreign firms, the origin of foreign firms, market orientation of foreign firms, the ownership structure of local firms and the technological levels of local firms. For instance, export-oriented foreign firms are likely to generate the greatest backward spillovers for the domestic economy among firm attributes.