Seminar in Economics: Reverse Import, Foreign Direct Investment and Exchange Rates

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Economics

When: Jan 31 2008 (All day)
Where: John A Burns Hall, Room 3012
What:


RESEARCH PROGRAM

Brown Bag Seminar

Reverse Imports, Foreign Direct
Investment and Exchange Rates

Yuqing Xing, PhD

Director, The
Research Institute

International
University of Japan

Thursday, 31 January
2008, 12:00 – 1:00 pm

John A. Burns Hall,
Room 3012, 3rd floor

This
presentation investigates linkages among
"reverse imports", foreign direct investment, and exchange rates. As an example
we have in mind the competition in the Japanese market of a Japanese
multinational firm and a Chinese domestic firm. Products are differentiated
based on Japanese consumers' brand name recognition. The model shows that yen
appreciation leads to an increase in Japanese production in China and "reverse imports", and a
decrease in Japanese domestic production. Due to the barriers in brand name,
the exports of the Chinese firm could fall, because the increase of reverse
imports may erode the market share of the Chinese firm, even though total
exports from China
increase. Further, we find that yen appreciation may improve the profits of the
Japanese firm and welfare in Japan
under reverse imports, against conventional wisdom. The predictions of the
model fit well with the actual numbers, and shed light on the current debate on
the Chinese currency.

Yuqing
Xing
is a Professor
of economics and the Director of International Development Program of the
Graduate School of International Relations at the International University of
Japan (IUJ). He is also the Director of the Research Institute of IUJ.

Prof. Xing obtained his PhD in
economics from University of Illinois at Urbana-Champaign, and M.A and B.A.
from Peking University. He has been a visiting professor/research fellow in
various institutions, such Bank of
Finland
, World Institute for
Development Economics Research
, National
Graduate Institute of Policy Studies (Tokyo)
, Institute of Advanced Studies of the United Nations University
,
Research Center of China Galaxy
Securities Company
, etc.

Prof. Xing`s research focuses on
trade, exchange rates, FDI and regional economic integration. His research has
been published in internationally refereed journals, such as Japan and the World Economy, Journal of Asian Economics, the World
Economy, Review of International Economics, China Economic Review, Resource and
Environmental Economics, etc.

Primary Contact Info:
Name: Kim Fujiuchi
Phone: 944-7300