Uncertainty, Trade and FDI: Short-Run and Long-Run Impact of China-Japan Island Disputes
Grant Data
Project Title
Uncertainty, Trade and FDI: Short-Run and Long-Run Impact of China-Japan Island Disputes
Principal Investigator
Dr Chen, Cheng
(Principal Investigator (PI))
Co-Investigator(s)
Dr Senga Tatsuro
(Co-Investigator)
Dr Zhang Hongyong
(Co-Investigator)
Duration
35
Start Date
2016-07-01
Amount
330000
Conference Title
Uncertainty, Trade and FDI: Short-Run and Long-Run Impact of China-Japan Island Disputes
Presentation Title
Keywords
Exports, Foreign Direct Investment, Geopolitical Conflict, Multinational Firms, Uncertainty
Discipline
Economics
Panel
Business Studies (B)
HKU Project Code
17507916
Grant Type
General Research Fund (GRF)
Funding Year
2016
Status
Completed
Objectives
1 We present evidence on how political events impact long-run economic variables such as foreign direct investment through affecting firm's beliefs. 2 We show that affiliates of Japanese multinationals in China become more pessimistic about their local demand after the escalation of the island dispute. 3 We show that this pessimism persisted even when actual sales of Japanese affiliates in China had improved.