The role of FDI in domestic exporting: Evidence from China

Sun, Sizhong (2012) The role of FDI in domestic exporting: Evidence from China. Journal of Asian Economics , 23 (4). pp. 434-441.

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DOI: 10.1016/j.asieco.2012.03.004

View at Publisher Website: http://dx.doi.org/10.1016/j.asieco.2012....

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Abstract

This paper investigates the impact of FDI on domestic exporting firms. We show that domestic firms respond to an increase in the presence of FDI by increasing their exports even though the increase in foreign presence can drive up production costs and make the domestic market more profitable. Our test case for this hypothesis is China, where we confirm the significant positive impact of FDI on domestic firms' exports. This finding sheds light on the massive exports and rapid inflow of foreign investment that have been observed in China in the past three decades.


Item ID:	21578
Item Type:	Article (Research - C1)
ISSN:	1873-7927
Date Deposited:	27 Jun 2012 05:40
FoR Codes:	14 ECONOMICS > 1402 Applied Economics > 140209 Industry Economics and Industrial Organisation @ 60% 14 ECONOMICS > 1402 Applied Economics > 140210 International Economics and International Finance @ 40%
SEO Codes:	91 ECONOMIC FRAMEWORK > 9102 Microeconomics > 910203 Industrial Organisations @ 100%
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