Chinese Migrants and their Impact on Homeland Development

This paper aims to systematically examine the impact of Chinese migrants on the economic activities of indigenous Chinese firms from two dimensions: foreign direct investment (FDI) by ethnic Chinese (ECI) and returnees. Using a unique dataset for firms in Zhongguancun Science Park, Beijing, we carry out an in-depth empirical study on the effects of ECI and returnees on indigenous Chinese firms’ productivity, exports and R&D in comparison with the effects of non-ethnic Chinese FDI. The findings have important policy implications.