Purpose–In spite of being the second largest recipient of foreign direct investment (FDI) in the world, China shows limited evidence of considerable FDI benefits on growth (Fan and Hu; Luo; Ran et al.). Motivated by Alfaro et al.'s model, the purpose of this study is to test whether poor...

Purpose – In spite of being the second largest recipient of foreign direct investment (FDI) in the world, China shows limited evidence of considerable FDI benefits on growth (Fan and Hu; Luo; Ran et al. ). Motivated by Alfaro et al. 's model, the purpose of this study is to test whether poor...