Tests spillover efficiency of foreign direct investment in Jiangsu, indicating significant economic benefits.
In this paper, we review the development process and its characteristics of inward foreign direct investment (FDI) in China. Using the latest data of Jiangsu province, we test the spillover efficiency of FDI. We find that FDI has spillover efficiency in Jiangsu's economy, but the smaller the technology gap between domestic and foreign enterprises, the larger the spillovers.
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Liu et al. (2004) studied this question.
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