Using data from a survey conducted by the World Bank in China, this paper shows that foreign ownership enhances firm productivity. We also find that only equity ownership from foreign firms can have such a positive impact, but not ownership from foreign institutional investors, banks, or...

The case of China seems to present a counterexample to the literature on economic institutions as its private enterprises have achieved spectacular growth despite poor protection of private properties and difficulties in accessing external finance. In this study, we address this apparent puzzle...

Existing studies have often failed to find positive impacts of horizontal FDI on domestic firms. We argue that the two effects underpinning the impacts of horizontal FDI (i.e., the positive spillover effect and the negative competition effect) have different degrees of attenuation with distance....

This paper studies the effect of foreign direct investment (FDI) on industrial agglomeration.Using the differential effects of FDI deregulation in 2002 in China on different industries, we find that FDI actually affects industrial agglomeration negatively. This result is somewhat...