Natasha Agarwal
Credit constraints and spillovers from foreign firms in China
Authors
Chris Milner
Alejandro
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, https://doi.org/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 | https://nottingham-repository.worktribe.com/output/723199 |
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