This paper studies the direct effect of foreign investment on target firm operating performance and growth. Foreign-invested firms grow in size but not in productivity compared with non-invested firms over a four-year horizon. Decomposing foreign investment into foreign direct investment and...

The upsurge of Chinese and Indian outward foreign direct investment (FDI) raises an unanswered question about locational determinants of direct investment from the two countries. Using an unbalanced bilateral FDI database, we find that Chinese and Indian FDI are attracted to countries with large...

Using privately-owned-enterprises (POEs) data in China, we find that access to external finance is a statistically significant factor explaining their probability of undertaking foreign direct investment (FDI). The significance of external finance is magnified in industries featured by high...