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The purpose of this paper is to examine whether multinational corporations moving into China have a negative impact on the extent of foreign firms moving into other developing countries in East Asia, Latin America and Eastern Europe.

The paper controls for a comprehensive set of determinants of why multinational enterprises enter the economies of East Asia, Latin America and Eastern Europe and then adds and examines the instrumented foreign direct investment flows into China to proxy the impact of China on these other economies.

It was found that the multinational enterprises entering into China stimulate investment in east Asia, but have no significant effects on multinational enterprises entering into Eastern Europe and Latin America.

Owing to data constraints, it was not possible to examine if these conclusions hold for different sectors such as the automobile and electronics sectors.

Governments in developing countries should focus on increasing their attractiveness to multinational enterprises. Policies such as lowering of the corporate tax rates should help.

The paper includes a very comprehensive set of factors and then uses foreign direct investment flows into China as a proxy for the impact of China on other economies.

The purpose of this paper is to examine various aspects of regional and global production networks, with a special focus on China.

The author studies four different approaches to measure production networks and discuss their strengths and weaknesses. The author presents some of the results associated with some of these measurements.

The author finds that using trade data alone is simple but incomplete. Bringing in input–output tables is useful but much more data would be needed. In addition, for the case of China, electronic goods and telecommunication goods tend to have a higher foreign value added.

Data with good quality can be a problem. The authors also have difficulty getting input–output tables for many years.

The results can guide policymakers as to which industries can create more domestic value added. The results can also lead to betting of an understanding of trade balances measured in the value added.

The results can generate further understanding among citizens of many different countries, including China, about the importance of different sectors in generating the value added.

The value of this paper is to focus on alternative ways to measure the value added in exports from China. The paper is the first to discuss the strengths and weaknesses of different approaches and present some of these results.