This paper models and tests the implications of institutional efficiency on the pattern of foreign direct investment … (FDI). We posit that domestic agents have a comparative advantage over foreign agents in overcoming some of the obstacles … domestic entrepreneurs than for foreign ones, but foreign producers enjoy a countervailing productivity advantage. Under these …

Using firm–level data, we find that the presence of foreign firms in China is positively associated with the …). In particular, we find: (1) the presence of foreign direct investment (FDI) is associated with larger differences in the … private firms’ sales to foreign firms and foreign consumers, but not with the sales of SOEs. We argue that these differences …

We review previous literature on productivity spillovers of foreign direct investment (FDI) in China and conduct our … findings that domestic private firms tend to be more involved in providing inputs and intermediary goods for foreign firms … than envisioned by the Chinese government. ; Formerly titled: What determines technological spillovers of foreign direct …