Is China taking direct investments away from other Asian economies? Theoretically, a growing China can add to other countries' direct investments by creating more opportunities for production-networking and raising the need for raw materials and resources. At the same time, the extremely low...

Is China taking direct investments away from other Asian economies? Theoretically, a growing China can add to other countries' direct investments by creating more opportunities for production-networking and raising the need for raw materials and resources. At the same time, the extremely low...

In this paper we first document the growing importance of intra-East Asian trade in parts and components and capital goods facilitated by foreign direct investment (FDI). Japanese direct investment has a stronger influence on intra-East Asian trade relative to FDI from France and Germany. It is...