We use a firm-level dataset for Chinese manufacturing, to estimate productivity spillovers from foreign direct investment (FDI) to local firms. The spillover channels considered include inter-firm labour turnover/mobility; vertical input-output linkages; exporting externalities; and horizontal...

We construct a static computable general equilibrium (CGE) model to quantify the endogenous productivity spillovers from foreign-invested firms to domestic firms, taking the Chinese economy as a case study. The coefficients of four spillover channels are estimated from econometric analysis. The...