China's GDP reached US$ 1.159 trillion in 2001, making it the sixth largest economy in the world. In addition the Chinese government has reformed its economy, liberated market forces and opened up many industries to foreign investors. However, the surge of Foreign Direct Investment in China will...

Purpose – The purpose of this paper is to develop a double mechanism model to separate two foreign direct investment (FDI) intra-industry spillovers mechanisms: spillovers by FDI intensity and by FDI efficiency. This paper seeks to illustrate the potential use of the double mechanism model...