China's policy of encouraging export processing has been the topic of much discussion in the academic literature and … economically and statistically significant positive causal effects of entering into export processing and ordinary export markets … of the productivity variable. We also find that export processors gain more when entering the industrialised North rather …

spillovers from export oriented vs domestic market oriented FDI, and allow for differing effects depending on domestic firms …' export activities. The results suggest that the mechanisms through which spillovers affect domestic firms are very complex …