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The role of Japanese FDI in China.

Authors :
Latorre, María C.
Hosoe, Nobuhiro
Source :
Journal of Policy Modeling. Mar2016, Vol. 38 Issue 2, p226-241. 16p.
Publication Year :
2016

Abstract

We quantify the impacts of a sharp fall of Japanese foreign direct investment (FDI) to China that occurred after the worldwide financial crisis in 2009 using a three-region (Japan, China, and the rest of the world) recursive dynamic computable general equilibrium model with multinational enterprises (MNEs). The FDI fall would reduce exports and production of Japanese MNE affiliates in China and depreciate the Renminbi. This latter effect would favor Chinese manufacturing, but China, would not be a gainer, because it would experience a contraction in its service sector, which would exceed the gains in manufacturing. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
01618938
Volume :
38
Issue :
2
Database :
Academic Search Index
Journal :
Journal of Policy Modeling
Publication Type :
Academic Journal
Accession number :
115385310
Full Text :
https://doi.org/10.1016/j.jpolmod.2016.02.003