Bai, Chong-En; Lu, Jiangyong; Tao, Zhigang - In: China Economic Review 21 (2010) 4, pp. 629-638
China's success in attracting foreign direct investment has been cast in doubt as mainly a transfer of capital, not knowhow, because its financial system is incapable of allocating domestic savings and hard-earned foreign reserves to domestic enterprises. To shed light on this debate, we examine...