Chinese industries with high absorptive capacity benefit most from FDI spillovers
The study looked at how foreign investment affects Chinese companies. They found that foreign investment can help the Chinese economy, but not all companies benefit equally. Some industries benefit more from foreign investment if they are good at learning from foreign companies or are already efficient. Also, foreign companies in China compete with each other, which can affect both foreign and Chinese companies differently. Overall, industries with high absorptive capacity and efficiency benefit the most from foreign investment spillovers.