Outward FDI and Domestic Input Distortions
Evidence from Chinese Firms
Bibliographic Data
| ID | 9710590 |
|---|---|
| Authors | Cheng Chen (0000-0002-3583-9370, Clemson University), Wei Tian (0000-0003-4125-4704, Peking University), Miaojie Yu (0000-0003-2114-6124, Peking University) |
| Year | 2019 |
| Volume | 129 |
| Issue | 624 |
| Pages | 3025-3057 |
| Publication date | 2019-11-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (PUBLISHER • GB) |
| DOI | 10.1093/ej/uez034 |
| OpenAlex | W1793105780 |
| Language | EN |
| Citations received | 6 |
| References cited | 36 |
We examine how domestic distortions affect firms’ production strategies abroad by documenting two puzzling findings using Chinese firm-level data of manufacturing firms. First, private multinational corporations (MNCs) are less productive than state-owned MNCs, but they are more productive than state-owned enterprises overall. Second, there are disproportionately fewer state-owned MNCs than private MNCs. We build a model to rationalise these findings by showing that discrimination against private firms domestically incentivises them to produce abroad. The model shows that selection reversal is more pronounced in industries with more severe discrimination against private firms, which receives empirical support
Business · China · Economics · Foreign direct investment · Industrial organization · Macroeconomics · Market economy · Microeconomics · Multinational corporation · Production (economics · State owned · Corporate Finance and Governance · Finance · Global trade and economics · International Business and FDI
Growing Like China
Comparative Advantage and Heterogeneous Firms
Export Versus FDI with Heterogeneous Firms
Policy distortions and aggregate productivity with heterogeneous establishments
Trade Liberalization and Embedded Institutional Reform
Finance and Misallocation
Firms, Contracts, and Trade Structure
Markups and Firm-Level Export Status
Factor market distortions across time, space and sectors in China
Multinationals, multi-plant economies, and the gains from trade
Estimating Production Functions Using Inputs to Control for Unobservables
The Dynamics of Productivity in the Telecommunications Equipment Industry
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
Misallocation and Manufacturing TFP in China and India
Selling China
Exports and Credit Constraints under Incomplete Information
Firm Exports and Multinational Activity Under Credit Constraints
Creative accounting or creative destruction? Firm-level productivity growth in Chinese manufacturing
Global Sourcing
A Simple Theory of International Trade with Multinational Corporations
Market Penetration Costs and the New Consumers Margin in International Trade
Processing Trade, Tariff Reductions and Firm Productivity
Logistic Regression in Rare Events Data
| Citations per year | 1 |
|---|---|
| Citation span | 2020 - 2024 (5) |
| Highly cited | No |