What Determines Technological Spillovers of Foreign Direct Investment: Evidence from China
Using the World Bank survey of 1500 firms in five Chinese cities, the authors study whether the presence of foreign firms produces technology spillovers on domestic firms operating in the same city and industry. Findings indicate positive spillovers for more technologically advanced firms and no or negative spillovers for more backward firms.
Link
http://www.frbsf.org/publications/economics/papers/2006/wp06-13bk.pdf