McCaig, Brian. <br/><br/>
FDI Inflows and Domestic Firms:  Adjustments to New Export Opportunities / 
Brian McCaig, Nina Pavcnik, Woan Foong Wong. 
 - Cambridge, Mass.  National Bureau of Economic Research  2022. 
 - 1 online resource:  illustrations (black and white); 
 - NBER working paper series  no. w30729 .
 - Working Paper Series (National Bureau of Economic Research)  no. w30729. .
<br/><br/> December 2022. 
<br/><br/> We investigate the long-term effects of export opportunities to a large destination market on multinational affiliates and domestic firms in a low-income host country. The US-Vietnam Bilateral Trade Agreement reduced US import tariffs on exports from Vietnam. Tariff reductions led to entry of foreign and private firms and to employment expansion in formal manufacturing, with foreign entrants contributing most to employment growth. State firms stall employment reallocation through slower contraction. Half of tariff-induced foreign entrant growth is post-entry and exporter-driven. Foreign entrants are from non-US sources, highlighting the importance of studying FDI from multiple source countries in a lower-income host. 
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<br/><br/><label>Subjects--Topical Terms: </label><br/>Trade Policy &bull; International Trade Organizations<br/>Empirical Studies of Trade<br/>Industrialization &bull; Manufacturing and Service Industries &bull; Choice of Technology<br/>International Linkages to Development &bull; Role of International Organizations