chapter  8
43 Pages

Magnitude and pattern of productivity spillovers

An FDI shock to the benchmark economy (without spillovers) An FDI shock without spillovers is introduced into the economy by increasing the capital stock in each foreign-invested sector. The investment data actually take the amount of FDI inflows in 2003, the year after the benchmark year 2002. As shown in Table 8.1, FDI into the manufacturing sectors accounts for almost 70 per cent of total FDI. Among manufacturing sectors, the top five sectors in attracting FDI are electronic products (11.9% of total FDI), textile (7.1%), raw chemical materials and chemical products (4.9%), garments and other fibre products (4.4%), and transport equipment (4.4%).