Foreign Direct Investment, Institutional Environment, and the Establishment of Private Economy in China



Despite the fact that numerous studies have attempted to analyze the effects that inward foreign direct investment (FDI) has on the host economy, a clear and decisive conclusion of the net impact has not been drawn (Chang & Xu, 2008; Zhang, Li, Li, & Zhou, 2010). In fact, some scholars have identified positive FDI spillover effects in emerging markets (Blomstrom, 1986; Buckley, Clegg, & Wang, 2007; Tian, 2007; Wei & Liu, 2006), while others have found negative or nonexistent effects on the domestic economy (Aitken & Harrison, 1999; Feinberg & Majumdar, 2001).


Foreign Direct Investment Intellectual Property Foreign Investment Institutional Environment Domestic Firm 
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© Douglas Cumming, Michael Firth, Wenxuan Hou, and Edward Lee 2015

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