This paper studies the impact of foreign direct investment on domestic firms' innovation in China. It provides causal evidence by exploiting China's foreign direct investment deregulation in 2002 and employs a difference-in-difference estimation strategy. Using a matched firm-patent data set...

This paper examines the effect of foreign direct investment on local structural transformation and human capital accumulation in China, exploiting variations in foreign direct investment inflows across manufacturing sub-sectors caused by China's foreign direct investment deregulation and initial...