The Logic of Spillover Interception: The Impact of Global Supply Chains in 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.
Original languageEnglish
JournalJournal of World Business
Issue number2
Pages (from-to)158-166
Number of pages9
Publication statusPublished - 2009
Externally publishedYes


  • Global value chains
  • Automotive industry
  • Technology transfer
  • Emerging markets
  • China

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