Chi Wan
University of Massachusetts Boston
Publications 1
Published on Jul 1, 2018in Journal of International Money and Finance1.78
Rui Li (University of Massachusetts Boston), Chi Wan (University of Massachusetts Boston), Mengying Wang (University of Massachusetts Boston)
This paper examines the joint effect of imports and inward foreign direct investment (iFDI), the two primary entry forms of foreign companies to the U.S. product market, on domestic firms’ capital investment decisions. We develop novel firm-level measures to gauge the impact of imports and iFDI. We show that increased import competition significantly reduces U.S. firms’ investment; in contrast, the effect of iFDI on investment is largely nonsignificant. Further analysis suggests that the negativ...