post thumbnail alt text

Xiaolan Fu

University of Oxford, Technology and Management Centre for Development

Xiaolan Fu is Director of the Technology and Management Centre for Development (TMCD), Professor of Technology and International Development and Fellow of Green College at Oxford University. She was President of the Chinese Economic Association (Europe) and CEA (UK) (2010-2011). Her research interests include innovation, technology and industrialisation; trade, foreign direct investment and economic development; emerging Asian economies; innovation and productivity in the UK/US.
More about Xiaolan Fu ›
publication
Digital Transformation of Global Value Chains and Sustainable Post-Pandemic Recovery

This perspective paper examines the impact of the COVID-19 pandemic on global production and trade from the perspective of global value chains. Particular attention is paid to the transmission mechanisms and the role of digital technology in sustainable post-pandemic economic recovery. It argues that emerging technologies will be a driver of the global economic recovery, while the challenge to sustainable and inclusive global development will be significant, especially with regard to inequality and job creation. Also discussed are policy implications, to ensure this recovery is inclusive and sustainable, not leaving any country or people behind.

Read more ›
publication
Trade in intangibles and the global trade imbalance

The emergence of intangibles has brought significant challenges for our understanding of capitalism and international trade. This paper develops a framework for the measurement of global trade that integrates trade in intangibles and trade in goods and services to analyse the global trade imbalance. Through in‐depth discussions of the five modes through which trade in tangibles are carried out, it develops an integrated framework for the measurement of international trade. Applying this framework to the estimation of trade imbalance of a group of the world's top innovative countries, we see significant adjustments of their trade balance. The overall trade deficit of the United States reduces by nearly half of its size from USD763 billion to 390 billion in 2015, the year for which we have the latest trade in value‐added data. The paper argues that the true picture of global trade imbalance is of much smaller scale than the traditional trade statistics suggest. Policy responses to rebalance should be discussed using a framework that fully incorporates different types of trade activities in the twenty‐first century. Implications of the new conundrum of globalisation are also discussed.

Read more ›
publication
Unpacking the Relationship between Outward Direct Investment and Innovation Performance: Evidence from Chinese firms

This study investigates the impact of outward direct investment (ODI) by Chinese MNEs on innovation performance and the conditions under which such an impact is moderated, based on a sample of Chinese firms. The empirical evidence suggests that undertaking ODI leads to an increase in the innovation performance of these Chinese firms. The impact of ODI on innovation is contingent on firm characteristics such as in-house R&D, strategic orientation, and international experiences as well as contextual factors associated with investment destinations and industry contexts. We also find that learning through ODI is a complex process. There is a substitution between ODI and in-house R&D in Chinese MNEs. Our findings suggest that conducting ODI in developed countries serves as an effective channel for latecomer firms to overcome internal resource constraints and leapfrog toward the technology frontier.

Read more ›
publication
Drivers of Export Upgrading

This paper analyses the determinants of export upgrading using a cross-country panel dataset over the 1992–2006 period. The results suggest that the export sophistication of countries is enhanced by capital deepening, engagement in knowledge creation, transfers via investment in education and R&D and foreign direct investment and imports. Institutional quality also facilitates the export upgrading of countries. The effect of natural resources on the structural upgrading of exports appears to be complex and mixed and is dependent upon the type of resources involved. The effects of these determinants vary between low, middle, and high income country groups.

Read more ›
publication
Processing Trade, FDI and the Exports of Indigenous Firms: Firm-Level Evidence from Technology-Intensive Industries in China

This study examines the impact of processing trade‐foreign direct investment (FDI) on the export competitiveness of indigenous firms using disaggregated firm‐level production data and product‐level trade data from China covering the 2000–07 period. The estimation results show that processing trade‐FDI has generated significant positive information spillover effect on the export performance of indigenous firms. However, its technology spillovers effect on the development of international competitiveness in indigenous firms is limited and in fact exerts a significant depressive effect on the propensity to export in these firms. Indigenous innovation, economies of scale and productivity are found to be the main drivers of export performance in indigenous firms.

Read more ›

Stay tuned on the latest news from our research network.