Purpose – The purpose of this paper is to examine foreign direct investment (FDI) spillovers accruing to Chinese local industry at both intra‐ and inter‐industry levels and how such effects vary with the nationality of the investor. Design/methodology/approach – A panel dataset for...

Globalization has both costs and benefits. In this paper we would focus upon one of the damages of globalization to China. It is said that inward FDI replaces local domestic capabilities in import-substitution countries. In the case of China the Chinese domestic industries are lacking...