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The role of Japanese FDI in China Latorre Muñoz, María De La Concepción Hosoe, Nobuhiro We quantify the impacts of a sharp fall of Japanese foreign direct investment (FDI) to China that occurred after the worldwide financial crisis in 2009 using a three-region (Japan, China, and the rest of the world) recursive dynamic computable general equilibrium model with multinational enterprises (MNEs). The FDI fall would reduce exports and production of Japanese MNE affiliates in China and depreciate the Renminbi. This latter effect would favor Chinese manufacturing, but China, would not be a gainer, because it would experience a contraction in its service sector, which would exceed the gains in manufacturing. 2023-06-18T05:54:53Z 2023-06-18T05:54:53Z 2016-03 journal article 0161-8938 10.1016/j.jpolmod.2016.02.003 https://hdl.handle.net/20.500.14352/23581 http://dx.doi.org/10.1016/j.jpolmod.2016.02.003 eng ECO2011-29314-C02-02 No. 25380285 restricted access Elsevier