U.S. FDI in China and the Rise of the U.S. Right Wing

Abstract

ABSTRACT This study examined the effect of the U.S. FDI in China on the rise of the U.S. right wing. We constructed the instrumental variables of the U.S. FDI in China and took deindustrialization as an intermediary variable to investigate the mechanism. On one hand, the U.S. FDI in China had a promotion effect on the rise of the U.S. right wing. On the other hand, the positive effect was indirectly caused by deindustrialization. Although the U.S. FDI in China contributed to the rise of the U.S. right wing, the rise of right wing should not be solely blamed on China.