Foreign direct investment and industrial agglomeration: Evidence from China

• Main Authors: HSU, Wen-Tai, LU, Yi, LUO, Xuan, ZHU, Lianming
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2020
• Subjects: FDI; deregulation; industrial agglomeration; competition; industrial growth; WTO; China; Asian Studies; Industrial Organization; International Economics
• Online Access: https://ink.library.smu.edu.sg/soe_research/2375; https://ink.library.smu.edu.sg/context/soe_research/article/3374/viewcontent/fdi_agglomeration041920_tables_.pdf
• Institution: Singapore Management University

This paper studies the effect of foreign direct investment (FDI) on industrial ag-glomeration. Using the differential effects of FDI deregulation in 2002 in China on different industries, we find that FDI actually affects industrial agglomeration neg-atively. As FDI brings technological spillovers a...