GLOBAL CORPORATIONS, CDM AND TECHNOLOGY TRANSFER TO CHINA

In this study we analyze the source and determinants of technology transfer associated to CDM projects in China. In particular, we draw attention to the main actors (Chinese and foreign) involved and to the role of global corporations. The analysis is based on the examination of 1074 registered projects. As key features, we show the prominence of German firms as technology providers and the absence of a strong relation between technology suppliers and credit buyers. We also discuss the role of leading Chinese firms and their vertical and horizontal relationships with foreign producers. Taking into account the evidence emerged from the descriptive scrutiny, in our econometric analysis we test the major drivers of international technology transfer in CDM projects in China. We find that project size and cost, project location, credit buyers and consultants characteristics, as well as technology diffusion are all relevant factors in determining the probability to have a foreign supplier of technology in the project.