Effects of foreign direct investment in services on input imports of manufacturing firms: Evidence from China

发布日期：2024/2/22

    作者：王雪峰   朱玲   刘海云

    单位：湖北经济学院   华中科技大学经济学院  

    期刊：Review of International Economic  

    Abstract:This study investigates the causal effects of foreign direct investment (FDI) in services on the input imports of manufacturing firms. We exploit a plausibly exogenous policy of FDI liberalization in services in China to construct an instrumental variable for FDI in services and address endogeneity concerns. The results demonstrate that FDI in services positively impacts both the value and sophistication of input imports for manufacturing firms. Mechanism analysis reveals that FDI in services enhances firms' input imports through reductions in production costs, relief from financial constraints, and decreased remote coordination costs. The positive effects of FDI in services are particularly pronounced for firms with lower initial productivity and higher levels of human capital.

DOI: https://doi.org/10.1111/roie.12741

链接：Effects of foreign direct investment in services on input imports of manufacturing firms: Evidence from China - Wang - 2024 - Review of International Economics - Wiley Online Library