FDI impact and spillover: Evidence from China's electronic and textile industries

Abstract

Using a large sample of large and medium size enterprises in China's electronic and textile industries, we investigate the impact of FDI on the productivity and sales of domestic firms. The rest of the paper is organised into four further sections. Section 2 describes the data used in this paper and provides a preliminary comparison between domestic and FDI receiving firms. In Section 3, we examine the existence and magnitude of the impact of FDI on the productivity domestic firms. We also investigate whether FDI from Hong Kong, Macao and Taiwan has a different impact on domestic Chinese firms than FDI from OECD countries. Section 4 concludes.