We first focus on the labor mobility mechanism, where the movement of skilled personnel from
foreign firms to domestic firms helps transfer advanced technology and management skills. Djankov
and Hoekman (2000) and G¨org and Strobl (2005) present evidence demonstrating the existence of
labor mobility effect in Czech and Ghana, respectively. For the case of China, we also find empirical
evidence that the labor market channel facilitates FDI spillovers in China.