foreign firms, the impact of spillover effect of inward FDI is contingent upon the productivity gap between the domestic firms … productivity gap between domestic low-productivity firms and foreign firms and works conversely for high-productivity firms. This … result suggests that once the productivity gap widens, the entry of foreign firms will increase the efficiency of high-productivity …

This study investigates: (i) the effect of foreign direct investment (FDI) on total factor productivity (TFP) and …