Thursday, November 15, 2007

Facts and Fallacies Regarding MNE in China

Many otherwise well-informed experts on international economics believe that US FDI in China is large, that US multinational enterprises (MNEs) have significantly enlarged the US-China trade deficit by shifting production aimed at the US market to Chinese affiliates, and that this production shift has undermined investment at home and in other countries.

Current conventional wisdom also suggests that US MNEs are moving cutting edge R&D to China, in order to take advantage of vast legions of low cost technologically skilled workers. Our recent research, based on comprehensive surveys of US multinational activity in China, suggests that each one of these suppositions is largely false.

More here.

1 comment:

Kempton said...

Thanks for the article link. For a moment, I thought you co-wrote the piece until I clicked the link.