Earlier studies on foreign direct investment (FDI) have mainly focused on its benefits. This paper examines the nature of FDI-related productivity spillovers in China's manufacturing sector. The empirical analysis based on firm level panel data, over the period 2000–2007, reveals that...

Using a simple theoretical model, this paper argues that an increase in foreign presence, which refers to the level of foreign investment in a given domestic firm, can affect the leverage of domestic firms. We apply the model to explore the link between foreign presence and leverage with firm...