The authors are listed alphabetically; each contributed equally.
Spillovers and competition among foreign and local firms in China
Article first published online: 22 FEB 2008
Copyright © 2008 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 29, Issue 5, pages 495–518, May 2008
How to Cite
Chang, S. J. and Xu, D. (2008), Spillovers and competition among foreign and local firms in China. Strat. Mgmt. J., 29: 495–518. doi: 10.1002/smj.674
- Issue published online: 19 MAR 2008
- Article first published online: 22 FEB 2008
- Manuscript Revised: 22 NOV 2007
- Manuscript Received: 12 MAY 2006
- spillover effects;
- competition effects;
- foreign direct investments;
- competitor analysis;
Combining the FDI spillover literature with a competitor analysis framework, we examine the relative size of spillover and competition effects in China between foreign entrants and local firms, among foreign entrants, and among local firms. Our results show that the increased presence of foreign entrants has generally benefited local firms nationally, but has negatively affected the survival rates of local firms in regional markets. Surprisingly, foreign entrants are crowded out not only by their peers, but also by reformed local firms at both the national and regional levels. Copyright © 2008 John Wiley & Sons, Ltd.