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How Do U.S. Firms Withstand Foreign Industrial Policies? / Xiao Cen, Vyacheslav Fos, Wei Jiang.
- Format:
- Book
- Author/Creator:
- Cen, Xiao.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w32411.
- NBER working paper series no. w32411
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2024.
- Summary:
- China's industrial policies ("Five-Year Plans") displace U.S. production/employment and heighten plant closures in the same industries as those targeted by the policies in China. The impact was not anticipated by the stock market, but U.S. companies in the "treated industries" suffer a valuation loss afterwards. Firms shift production to upstream or downstream industries benefiting from the boost, or offshore to government-endorsed industries in China. Such within-firm adjustments offset the direct impact. U.S. firms are better able to withstand foreign government interventions provided that they enjoy flexibility, including preexisting business toeholds in the "beneficiary" industries, financial access, and labor fluidity.
- Notes:
- Print version record
- May 2024.
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