We develop a three-country heterogeneous-firm model and show that FDI liberalization in one foreign country (F1) results in the following: (i) some firms from the home country switch from export to FDI in F1; (ii) skilled labor¡¯s wage rate drops in the home country; (iii) wage inequality...

Using the panel data from 2001 to 2003 across manufacturing industries in China, this paper analyzes the intra-industry and inter-industry spillovers from export on the productivity and innovation activities of domestic enterprises in China. Among the industries we investigate and in the sample...