Natasha Agarwal
Credit constraints and spillovers from foreign firms in China
Agarwal, Natasha; Milner, Chris; Riaño, Alejandro
Authors
Chris Milner
Alejandro Riaño
Abstract
This paper examines whether credit constraints affect Chinese firms’ absorption of productivity spillovers originating from the activity of foreign-owned firms. Using firm-level data for 2001–2005, we find evidence of positive spillovers originating from foreign-owned firms from countries other than Hong Kong, Macau and Taiwan for non-state owned Chinese firms operating in the same industry and province. Using an index of external finance dependence to measure credit constraints, we find that only non-state-owned firms operating in industries with external finance dependence below the index median exhibit significantly positive spillovers from the activity of foreign firms.
Citation
Agarwal, N., Milner, C., & Riaño, A. (2014). Credit constraints and spillovers from foreign firms in China. Journal of Banking & Finance Law and Practice, 48, doi:10.1016/j.jbankfin.2014.01.036
Journal Article Type | Article |
---|---|
Publication Date | Feb 12, 2014 |
Deposit Date | Sep 8, 2015 |
Publicly Available Date | Sep 8, 2015 |
Journal | Journal of Banking & Finance |
Print ISSN | 1034-3040 |
Electronic ISSN | 0378-4266 |
Publisher | Thomson Reuters |
Peer Reviewed | Peer Reviewed |
Volume | 48 |
DOI | https://doi.org/10.1016/j.jbankfin.2014.01.036 |
Keywords | Foreign direct investment; Knowledge spillovers; Credit constraints; China |
Public URL | http://eprints.nottingham.ac.uk/id/eprint/29843 |
Publisher URL | http://www.sciencedirect.com/science/article/pii/S0378426614000508 |
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Copyright Statement
Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by-nc-nd/4.0
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