This paper expands existing international business literature by examining the impact of FDI on domestic firms. It investigates how FDI affects the productivity of domestic firms in China. The results show that FDI may exert a different impact on firms at the regional level than it does on firms...

We examine the effect of a country's governance environment on its propensity to trade. Using an updated framework of governance environment, we classify countries based on the dominant mode of governance into three types: (1) rule-based (strong public rule of law), (2) relation-based (weak rule...