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Essays On The Role Of Knowledge In Recent Chinese Development, Jie Bai
Publicly Accessible Penn Dissertations
Chapter 1: Earlier studies have consistently found evidence for productivity externalities of FDI through backward linkages. However, most studies do not use direct measures of backward linkages, nor do they further investigate what exactly generates these productivity externalities. Using a unique dataset from the Chinese automotive industry, which provides direct supply linkage measures, this study shows that compared with suppliers that only sell to domestic brands, the total factor productivity premium is about 16.7 percent for auto parts suppliers that sell to at least one foreign brand. Employing difference-in-differences estimation, a causal link from backward linkages to the suppliers ...