1 Crowds in or crowds out? The effect of foreign direct investment on domestic investment in Chinese cities Yao Yao 1,2 1 School of International Economics & Trade Shanghai Lixin University of Accounting and Finance 995 Shangchuan Road, Shanghai 201209, China and 2 School of Energy and Environment City University of Hong Kong Kowloon, Hong Kong Email: yaoyao@cityu.edu.hk Ruhul Salim * School of Economics and Finance, Curtin Business School Curtin University Email: Ruhul.Salim@cbs.curtin.edu.au Acknowledgement: The authors are grateful to two anonymous referees and Professor Robert Kunst for helpful comments and suggestions, which tremendously improved the quality and presentation of this article. Yao acknowledges the comments from Professor Renato Andrin Villano. However, authors are responsible for any error remains. * Corresponding author: Corresponding author: Associate Professor Ruhul Salim, School of Economics & Finance, Curtin University, Perth, WA, 6845. Phone: +618 9266 4577, E-mail: Ruhul.Salim@cbs.curtin.edu.au