International Joint Ventures and Internal vs. External Technology Transfer: Evidence from China / Kun Jiang, Wolfgang Keller, Larry D. Qiu, William Ridley.

Format:

Book

Author/Creator:

Jiang, Kun.

Contributor:

National Bureau of Economic Research.

Keller, Wolfgang.

Qiu, Larry D.

Ridley, William.

Series:

Working Paper Series (National Bureau of Economic Research) no. w24455.

NBER working paper series no. w24455

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

International Joint Ventures and Internal vs. External Technology Transfer

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2018.

Summary:

We study the economics of international joint ventures using administrative data for China. We first show that foreign investors choose Chinese partners that are relatively large, productive, and more innovative to set up their joint venture. Using a difference-in-differences framework and accounting for these selection effects, we then provide evidence that joint ventures lead to domestic benefits in the form of productivity and technological spillovers to both the Chinese partners in joint ventures as well as other domestic Chinese firms. Exploiting the easing of joint venture requirements as China entered the WTO in the year 2001, we further show that spillovers from joint ventures to other domestic firms increased in the wake of China's WTO accession, consistent with gains from foreign technology rising due to enhanced commitment through the rules-based WTO system. Our results shed new light on the efficacy of FDI performance requirements as well as on claims regarding international technology transfer that underpinned the China-US trade war.

Notes:

Print version record

March 2018.