TY - JOUR
T1 - The temporal and spatial dynamics of FDI productivity spillovers
T2 - A technology gap perspective
AU - Zhang, Jie
AU - Chen, Jiwei
AU - Chen, Guohui
AU - Zhi, Manlin
N1 - Publisher Copyright:
© 2025 Elsevier B.V.
PY - 2025/9
Y1 - 2025/9
N2 - An emerging literature estimates the productivity spillovers of foreign direct investment (FDI), but the temporal and spatial dynamics and the impact of the technology gap on FDI productivity spillover are insufficiently investigated. To provide a more comprehensive estimate for the international policy analysis, the study estimates the effects by utilizing the sample of 53 “Belt and Road” Initiative countries over the period 2003–2020 and captures the temporal and spatial dynamics of FDI productivity spillovers conditional on the technology gap. Moreover, the channels of FDI spillovers on productivity are investigated. The study reveals significant contributions of Chinese outward foreign direct investment (OFDI) -induced spillovers to the host countries' productivity growth by facilitating transformations in industrial and labour structures, alongside optimizing capital allocation. Nonetheless, spillover effects diminish with widening technology gaps, especially when exceeding a certain threshold. Temporal analysis indicates a strengthening trend in productivity spillovers over time. The spatial analysis demonstrates that Chinese OFDI exhibits negative spatial spillover effects, indicating the presence of competitive dynamics in attracting foreign capital.
AB - An emerging literature estimates the productivity spillovers of foreign direct investment (FDI), but the temporal and spatial dynamics and the impact of the technology gap on FDI productivity spillover are insufficiently investigated. To provide a more comprehensive estimate for the international policy analysis, the study estimates the effects by utilizing the sample of 53 “Belt and Road” Initiative countries over the period 2003–2020 and captures the temporal and spatial dynamics of FDI productivity spillovers conditional on the technology gap. Moreover, the channels of FDI spillovers on productivity are investigated. The study reveals significant contributions of Chinese outward foreign direct investment (OFDI) -induced spillovers to the host countries' productivity growth by facilitating transformations in industrial and labour structures, alongside optimizing capital allocation. Nonetheless, spillover effects diminish with widening technology gaps, especially when exceeding a certain threshold. Temporal analysis indicates a strengthening trend in productivity spillovers over time. The spatial analysis demonstrates that Chinese OFDI exhibits negative spatial spillover effects, indicating the presence of competitive dynamics in attracting foreign capital.
UR - https://www.scopus.com/pages/publications/85219001666
U2 - 10.1016/j.ecosys.2025.101292
DO - 10.1016/j.ecosys.2025.101292
M3 - Article
AN - SCOPUS:85219001666
SN - 0939-3625
VL - 49
JO - Economic Systems
JF - Economic Systems
IS - 3
M1 - 101292
ER -
