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Facts and Fallacies about U.S. FDI in China

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  • Lee Branstetter
  • C. Fritz Foley

Abstract

Despite the rapid expansion of U.S.-China trade ties, the increase in U.S. FDI in China, and the expanding amount of economic research exploring these developments, a number of misconceptions distort the popular understanding of U.S. multinationals in China. In this paper, we seek to correct four common misunderstandings by providing a statistical portrait of several aspects of U.S. affiliate activity in the country and placing this activity in its appropriate economic context.

Suggested Citation

  • Lee Branstetter & C. Fritz Foley, 2007. "Facts and Fallacies about U.S. FDI in China," NBER Working Papers 13470, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:13470
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    Cited by:

    1. Hornstein, Abigail S., 2011. "Where a contract is signed determines its value: Chinese provincial variation in utilized vs. contracted FDI flows," Journal of Comparative Economics, Elsevier, vol. 39(1), pages 92-107, March.
    2. Barry Bosworth, 2008. "Trading with Asia’s Giants," Working Papers id:1615, eSocialSciences.
    3. repec:wsr:wpaper:y:2009:i:021 is not listed on IDEAS
    4. Nobuaki Yamashita, 2011. "Can India become an export platform for global operations of MNCs? Perspectives from Japanese and United States MNC affiliates," STUDIES IN TRADE AND INVESTMENT, in: Witada Anukoonwattaka & Mia Mikic (ed.), India: A New Player in Asian Production Networks?, Studies in Trade and Investment 75, chapter 3, pages 54-77, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    5. Riccardo Fiorentini, 2011. "Global Imbalances, the International Crisis and the Role of the Dollar," Working Papers 18/2011, University of Verona, Department of Economics.
    6. Riccardo Fiorentini & Guido Montani, 2012. "The New Global Political Economy," Books, Edward Elgar Publishing, number 14443.
    7. De la Cruz Gallegos Jose Luis & Ivanova Boncheva Antonina & Ruiz-Porras Antonio, 2008. "Competition between Latin America and China for US Direct Investment," Global Economy Journal, De Gruyter, vol. 8(2), pages 1-22, June.
    8. Ito, Banri & Yashiro, Naomitsu & Xu, Zhaoyuan & Chen, XiaoHong & Wakasugi, Ryuhei, 2012. "How do Chinese industries benefit from FDI spillovers?," China Economic Review, Elsevier, vol. 23(2), pages 342-356.
    9. Adam S. Posen & Gary Clyde Hufbauer & Cathleen Cimino & Tyler Moran & Jaana Remes & Theodore H. Moran & Lindsay Oldenski & Barbara Kotschwar & Jeffrey J. Schott & Thomas F. McLarty & Eduardo M. Mora, . "NAFTA 20 Years Later," PIIE Briefings, Peterson Institute for International Economics, number PIIEB14-3, August.
    10. Barry Bosworth & Susan Collins, 2008. "United States-China trade: where are the exports?," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 6(1), pages 1-21.
    11. Nobuaki Yamashita, 2012. "Can India become an export platform for global operations of Japanese and American multinational corporations affiliates?," Working Papers 11112, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
    12. Greaney, Theresa M. & Li, Yao, 2009. "Assessing foreign direct investment relationships between China, Japan, and the United States," Journal of Asian Economics, Elsevier, vol. 20(6), pages 611-625, November.
    13. Steven Husted & Shuichiro Nishioka, 2013. "China’s fare share? The growth of Chinese exports in world trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(3), pages 565-585, September.

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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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