This paper explores the connection between the external opening of China and differences in innovation across Chinese regions. For the period 1995–2010, we find that regions that attract inward foreign direct investment (FDI) and exports have become more innovative. Further, we show a U-shaped...

We empirically investigate the factors that drive the uneven regional distribution of foreign direct investment (FDI) across Chinese provinces from 1995 to 2006. We first perform a factor analysis to summarize information embodied in around 40 variables and derive four FDI determinants:...

With the help of a theoretical model, we analyze the relation between rent sharing in an international equity joint venture (EJV) and local public goods provision. In our setting, the local government faces a commitment problem to provide public services ex post to the set-up of the firm. We...

Although at the country and industry level there is much evidence on the importance of access to services for exports and participation in global value chains, such evidence is largely absent at the firm level. In this paper we use a newly constructed dataset that connects city-level access to...

This study empirically investigates the dynamics of motivations behind China's outward foreign direct investment (FDI). Based on a dataset of 75 host countries of China's outward FDI, we test the relative importance of outward FDI motives in different time periods. We account for endogeneity...