Journal
JOURNAL OF WORLD BUSINESS
Volume 44, Issue 2, Pages 158-166Publisher
ELSEVIER SCIENCE INC
DOI: 10.1016/j.jwb.2008.05.005
Keywords
Global value chains; Automotive industry; Technology transfer; Emerging markets; China
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Drawing on the global value chain analysis and institutional views, this paper explains the mechanism of spillover interception, a structural obstacle to technology spillovers in emerging economies. Contrary to the widely accepted perception that FDI is expected to generate spillover of intermediate technology in particular, the findings indicate that excess inward FDI could structurally inhibit technology spillovers even at the lower tiers of the supply hierarchy within the emerging economy context. Based on an exploratory case study of the Chinese automotive industry, the paper analyses the net impact of global supply chains, and calls for a more comprehensive policy coordination. (C) 2008 Elsevier Inc. All rights reserved.
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