@article{Li:330179,
      recid = {330179},
      author = {Li, Qiaomin},
      title = {Analyzing Effects of the Regional Comprehensive Economic  Partnership on FDI in a Firm Heterogeneity CGE Framework},
      address = {2017},
      pages = {64},
      year = {2017},
      note = {Presented at the 20th Annual Conference on Global Economic  Analysis, West Lafayette, IN, USA},
      abstract = {The RCEP (Regional Comprehensive Economic Partnership) is  a free trade agreement (FTA) that is currently under  negotiation among China and 15 Asian countries. It is  another mega FTA in the Asia-Pacific region after the  Trans-Pacific Partnership (TPP). This paper investigates  the potential effect of the RCEP on foreign direct  investment (FDI) with a focus on China through a computable  general equilibrium (CGE) model. The CGE model is built on  the extended theory of firm heterogeneity to FDI, which is  able to capture the intensive margin and extensive margin  of FDI increase. The RCEP is simulated to impact on FDI  through a direct effect of FDI liberalization and an  indirect effect of trade liberalization. Simulation results  show that the RCEP will encourage FDI to China through its  trade effect and the direct FDI effect. While the  competition from imports drives out the least productive  foreign invested firms, the export expansion of firms using  FDI will lead to an increase in foreign investment. In  addition, the facilitation of trade in intermediate goods  tends to promote vertical FDI. The direct FDI effect from  investment liberalization will evidently promote FDI from  partners. As for the welfare effect, China will gain  US$103~214 billion, accounting for 1.08~2.24% of GDP.},
      url = {http://ageconsearch.umn.edu/record/330179},
}