Previous research has been inconclusive as regards the effect of outward foreign direct investment (FDI) on domestic investments. In this article we show that this inconclusiveness can be explained at a disaggregated level as a function of the way industries are organized. Based on a simple...

We investigate how the export performance of firms in China is influenced by credit constraints. Using panel data from Chinese customs for 1997-2007, we show that credit constraints restrict international trade flows and affect the sectoral composition of firms’ activity. We confirm that...

Since the global crisis, China's foreign trade is no longer driven by its involvement in the global supply chains (i.e. by processing trade) but its dynamics stems from China’s own domestic demand and supply. For foreign funded enterprises, China is less and less a production base for export...

Since 2007 China has considerably reduced its external global imbalances. Its bilateral trade surpluses with the EU and the US have persisted because the rise of China’s import demand has mainly benefited its Asian neighbors and the resource rich countries. The rapid growth of China’s...

No abstract.

The global crisis is forcing China’s economy to become less dependent on foreign markets. Manufacturing industry has to adjust to changes in international demand. Foreign affiliates’ processed exports are vulnerable to the slow-down of Western demand, while Chinese exporting firms are better...