This paper presents an empirical study of how U.S. antidumping （AD） actions against China affect China ＇s inward and outward foreign direct investment （FDI） based on the international division of labor model. Our...This paper presents an empirical study of how U.S. antidumping （AD） actions against China affect China ＇s inward and outward foreign direct investment （FDI） based on the international division of labor model. Our findings are as follows： （1） The U.S.-China trade deficit has been widened by both downstream firms in China established through vertical FDI and also inward enterprises established through horizontal FDI. The widening deficit in turn exacerbates vitriolic complaints in the U.S. about injury to its industries. This will lead to further U.S. AD actions discouraging FDI in China. （2） U.S. AD cases against China have negatively impacted China＇s metal manufacturing, chemical and, especially, textile industries in terms of exports and inward FDI. From 2004 to 2009, the share of total inward FDI going to China＇s manufacturing sector has dropped drastically by almost 20 percent. This supports predictions made using the international division of labor model. （3） With U.S. AD actions against Chinese products on the rise, Chinese firms chose not to circumvent such barriers through outward FDI in the U.S. but rather through outward FDI in tax havens. Such a pattern of outward FDI is not helpful for China to establish its own successful industrial development model.展开更多
In this paper, the authors discuss whether political stability would influence Foreign Direct Investment （FDI） inflow. There is an increasing interest among scholars about FDI since it has been considered as a way t...In this paper, the authors discuss whether political stability would influence Foreign Direct Investment （FDI） inflow. There is an increasing interest among scholars about FDI since it has been considered as a way to offer abundant foreign capital, high skills, and new jobs throughout developing countries. Foreign companies pay more attention to the institutional properties and time horizon of the government leader. From historical experience, autocratic countries attract more FDI because of their flexibility and powerfulness. Hence, the research assumes that political stability as well as other factors like GDP, OMI, and interest rate probably would increase FDI inflow. Stata and Eviews have been used for regressing the independent variables and dependent variable. Correlation between each individual variable was calculated, and Least Squares method was used for investigating whether the linear correlation is significant. Finally, carefully analysing each indicator and ploting the graphs, things were found that there is no significant correlation between political stability factors of a country and FDI inflow. There are several explanations about the failure of hypothesis. First, the 10-year span is not long enough to prove the relationship. Then, the countries picked are most on the transition from autocracies to democracies. All the factors might influence the result of the correlation. Specific external factors such as economic conditions of investors need to be explored to see if it would probably determine the strong or weak of FDI.展开更多
基金This paper is sponsored by the Chinese National Social Science Foundation Project （grant llBJY142）, Chinese MOE Project of Key Research Institute of Humanities and Social Sciences at Universities （grant 08JJD790138）, Shanghai Pujiang Program Project （grant 2011C）, Shu Guang Project of Shanghai Educational Development Foundation （grant llSGl0） and 985＇Third Period Project of Fudan University （grant 2011SHKXZD002）.
文摘This paper presents an empirical study of how U.S. antidumping （AD） actions against China affect China ＇s inward and outward foreign direct investment （FDI） based on the international division of labor model. Our findings are as follows： （1） The U.S.-China trade deficit has been widened by both downstream firms in China established through vertical FDI and also inward enterprises established through horizontal FDI. The widening deficit in turn exacerbates vitriolic complaints in the U.S. about injury to its industries. This will lead to further U.S. AD actions discouraging FDI in China. （2） U.S. AD cases against China have negatively impacted China＇s metal manufacturing, chemical and, especially, textile industries in terms of exports and inward FDI. From 2004 to 2009, the share of total inward FDI going to China＇s manufacturing sector has dropped drastically by almost 20 percent. This supports predictions made using the international division of labor model. （3） With U.S. AD actions against Chinese products on the rise, Chinese firms chose not to circumvent such barriers through outward FDI in the U.S. but rather through outward FDI in tax havens. Such a pattern of outward FDI is not helpful for China to establish its own successful industrial development model.
文摘In this paper, the authors discuss whether political stability would influence Foreign Direct Investment （FDI） inflow. There is an increasing interest among scholars about FDI since it has been considered as a way to offer abundant foreign capital, high skills, and new jobs throughout developing countries. Foreign companies pay more attention to the institutional properties and time horizon of the government leader. From historical experience, autocratic countries attract more FDI because of their flexibility and powerfulness. Hence, the research assumes that political stability as well as other factors like GDP, OMI, and interest rate probably would increase FDI inflow. Stata and Eviews have been used for regressing the independent variables and dependent variable. Correlation between each individual variable was calculated, and Least Squares method was used for investigating whether the linear correlation is significant. Finally, carefully analysing each indicator and ploting the graphs, things were found that there is no significant correlation between political stability factors of a country and FDI inflow. There are several explanations about the failure of hypothesis. First, the 10-year span is not long enough to prove the relationship. Then, the countries picked are most on the transition from autocracies to democracies. All the factors might influence the result of the correlation. Specific external factors such as economic conditions of investors need to be explored to see if it would probably determine the strong or weak of FDI.
