This paper studies whether inward FDI deregulation promotes innovation by firms in the host country. A theoretical framework, in which the entry of additional foreign firms is associated with both spillover and competition effects, is built to guide the empirical evaluation. Exploiting data on...

This paper uses a unique firm-level data set from China’s two most developed regions, the Yangtze River Delta (YRD) and the Pearl River Delta (PRD), to examine the innovation impacts of environmental regulations. Air and water pollution reduction plans under the total emissions control policy...