NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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William C. Ridley

University of Illinois at Urbana-Champaign
435 Mumford Hall
1301 W Gregory Dr
Urbana, IL 61801

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: University of Illinois at Urbana-Champaign

NBER Working Papers and Publications

March 2018International Joint Ventures and Internal vs. External Technology Transfer: Evidence from China
with Kun Jiang, Wolfgang Keller, Larry D. Qiu: w24455
We study the economics of international joint ventures with administrative data for China exploiting the change in foreign direct investment policy as China entered the WTO in the year 2002. Accounting for a quarter of all international joint ventures worldwide, we first show that foreign investors choose Chinese partners that are relatively large, productive, and often subsidized to set up their joint venture. Second, we document benefits from foreign technology in terms of innovation and productivity that go far beyond the joint venture, not only to the Chinese joint venture parent firm but also to entrepreneurs at firms upstream from and in the same industry as the joint venture (backward and horizontal spillovers, respectively). As China has dropped joint venture requirements and shift...
 
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