دانلود رایگان مقاله انگلیسی سرمایه گذاری شرکت های آمریکایی و نفوذ خارجی: واردات و سرمایه گذاری مستقیم - الزویر 2018

Abstract:

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 negative effect of imports on investment is due to competition-induced decline in cash flows. And the nonsignificant result for iFDI can be partly attributed to technology spillovers generated by foreign multinational’s U.S. productions, which promote U.S. local firms’ innovation capacity and consequently offset the negative effect of foreign competition on investment. Overall, our results indicate that foreign competition plays a key role in shaping corporate investment policy and highlight the distinct implications of imports and iFDI on firm investment.

6 Concluding Remarks

In this paper, we jointly examine how U.S. manufacturing firms adjust capital investment decisions to rising imports and foreign multinationals’ inward investment activities. Our analytical framework illustrates the distinct implications of U.S. imports and iFDI for domestic firms’ investment decisions. Specifically, while both imports and iFDI greatly intensify product market competition, iFDI also generates considerable knowledge spillovers that could enhance domestic firms’ productivity and innovative capability. We construct two novel measures to capture firm-level exposure to the two primary forms of foreign penetration of the U.S. product market, namely, and . Our empirical results show that increased exposure to imports significantly reduces U.S. domestic firms’ investment; in contrast, the effect of iFDI on investment is statistically insignificant. Further analysis suggests that the negative effect of imports on investment is due to tradeinduced decreases in internal cash flows. And the nonresult finding of iFDI can be attributed to the trade-off of the efficiency gain from FDI spillovers and iFDI-induced competitive threats. Technology transfer improves U.S. firms’ innovation capacity and offsets the negative effect of foreign competition on firm investment. Overall, our results indicate that trade-induced competitive pressure plays a key role in shaping firm investment and paint a more complex nuanced and complete picture of how U.S. corporate investment policy responses to the market penetration of foreign companies.