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DTSTART;TZID=America/New_York:20240320T120000
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SUMMARY:Carolina Moehlecke (Fundação Getulio Vargas\, presenter)\, Matias Spektor (FGV) and Guilherme Fasolin (Vanderbilt)\, "Drivers of Negative Perceptions of Chinese FDI: Experimental Evidence from Brazil"
DESCRIPTION:Abstract: Over the past decade\, China’s direct investment in Brazil has quadrupled\, making it one of the main investors in Latin America’s largest economy. This study examines Brazilians’ perceptions of this recent phenomenon. Using a conjoint experiment\, we find that Brazilians view Chinese investment as less advantageous compared to investments from Europe and the United States. We propose that this negative stance towards Chinese capital in Brazil arises from informational cues and frames around the topic. To test this overarching hypothesis\, we conduct a vignette survey experiment in Brazil with treatments highlighting worrisome outcomes of Chinese investment\, such as closer ties with a non-democratic country\, excessive economic dependency\, threats to sovereignty\, association with communism\, and the growing influence of Chinese culture in Brazilian society. The results indicate that all treatments except the influence of Chinese culture negatively affect Brazilians’ views on Chinese investment. Moreover\, we observe significant variation based on political self-identification\, with right-leaning individuals more affected by the treatments\, particularly those related to economic dependency and non-democracy. In contrast\, traditional drivers of preferences toward FDI do not produce significant effects. We employ text analysis of Congressional debates to provide further evidence that a top-down process shapes Brazilians’ attitudes toward Chinese FDI\, especially those stemming from the political right. By examining the micro foundations of Brazilians’ stances on Chinese FDI — a globalization feature whose benefits usually surpass the costs — we contribute to a growing literature that examines China’s ability and limits to influence the developing world amid great-power competition. \nLink to PDF \nModerator: Sarah Bauerle Danzman
URL:https://gripe.polisci.ucla.edu/event/moehleck-2024-03-20/
CATEGORIES:season10
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