Abstract: This paper focuses on the impact of domestic selling activities of foreign firms (DSAFF) on the productivity, R&D spending and profits of local firms of China. We find that: DSAFF on the whole has a positive effect on local firms' productivity, which is more significant in the medium technological industries; in the high-technology industry，there shows a negative effect of DSAFF on the domestic firms' productivity; DSAFF has constrained the R&D investment of domestic firms, and it's significant in medium and high technological industries; DSAFF has also inhibited the profits of local firms, which is only significant in the industry of median technology.
Keywords：Foreign Firms, Domestic Selling Activities, Local Firms, Constraining Effect
source:Finance & Trade Economics ,No8,2013