In search of determinants of FDI backward spillovers: a meta-analysis

Abstract

Drawing on a unique dataset of 694 estimates from 24 studies on foreign direct investment backward productivity spillovers in China, our prime objective is to investigate determinants of backward spillovers from foreign direct investment using Bayesian Model Averaging based Meta-Analysis. Our results suggest that backward spillovers vary across firm attributes, including 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-orientated foreign firms generate largest benefits of backward spillovers for the domestic economy among firm attributes.