This paper investigates the geographic extent of foreign direct investment (FDI) technology spillovers and diffusion in the People's Republic of China (PRC). We employ spatial dynamic panel econometric techniques to detect total factor productivity (TFP) innovation clusters, uncover the spatial...

This paper investigates the determinants of FDI sectoral allocation in 29 China's manufacturing sectors from 2000 to 2007. We find that FDI sectoral allocation has a strong self-reinforcing effect. MNCs with ownership advantages tend to invest more in local high productivity sectors. The FDI...