The “International Trade Research Trend” section aims to release the latest research findings in the field of international trade published in authoritative Chinese journals such as “Social Sciences in China,” “Economic Research Journal,” “Journal of Management World,” “China Economic Quarterly,” and “The Journal of World Economy.” It strives to provide everyone with timely, accurate, and high-quality front-line dynamics in the field of international trade.

China Economic Quarterly

FDI Deregulation sand Employment

CHEN Yongbing   HU Jiawen   DU Yurui

Abstract: We empirically investigate whether employment is affected by foreign direct investment (FDI) . Empirical results show that the FDI entry deregulations promote employment by increasing job creation rate. In addition to theemploymentexpansion ofincumbentfirms, theFDIentryderegulationsfa- cilitate the entry ofnew firms, which also contributes to employment. Furthermore, FDIin upstream in- dustries can promote employmentin this industry, and FDIfrom otherregions can promotelocalemploy- ment. Finally, a simple estimate shows thatabout $ 56 900 is required for each job created.

Key words: FDIderegulations; netemploymentgrowth; difference-in-difference estimation JEL Classification: F10, F12, O24

China Economic Quarterly

Does Outward Foreign Direct Investment Improve Environmental Qualityin HomeCountry?—Evidence from Chinese Firms Water Pollution Emissions

TIAN Suhua  XIONG Qin

Abstract: Weempiricallyexaminethecausaleffectsand mechanismsofChina soutward foreign direct investmenton pollution emissions. Using a difference-in-differences framework and various heterogeneity robustestimation methods based on a seriesoffirm-leveldata, wefind thatoutward foreign directinvest- mentsignificantly reduces firms COD emissions. Moreover, itincreases totaloutputwhile reducing COD  emission intensity. The mechanism analysis shows thatfirms achieve emission reductions mainly through reverse technology spillovers from outward foreign directinvestmentin host countries with stricter envi- ronmentalregulations and by promoting the intensive margin and extensive margin ofexports.

Key words:outward foreign directinvestment,irmspollution emissions,difference-in-differences

JEL Classification: D21, F21, Q53

The Journal of World Economy

Tax Governance in the Context of High-Level Openness: Import Competition and Corporate Tax Avoidance

Zhao Chunming, Zhong Xiaohuan, Ban Yuanhao

Abstract：Expanding imports is essential for promoting high-quality domestic economic development and building a global community with a shared future. However, the resulting competitive effects may influence corporate tax avoidance motives, thereby eroding the national tax base. This study, based on data from Chinese listed companies from 2000 to 2020, leverages the impact of import tariff adjustments to identify the causal relationship between import competition and corporate tax avoidance. The findings indicate that increasing import competition significantly exacerbates corporate tax avoidance. This occurs because import competition squeezes the profits of domestic enterprises, highlighting the competitive disadvantages of lagging firms and forcing them to resort to tax avoidance to compensate or survive. The tax avoidance induced by heightened import competition is not a random short- term phenomenon but is driven by the reinforcing feedback of tax avoidance capital market premium effects. When import competition continues to intensify, the digital upgrading of tax administration and the reduction of taxes and fees can enhance corporate tax compliance, though the latter serves as a palliative rather than a curative measure. This study enriches research on the external drivers of corporate tax avoidance and deepens the understanding of trade gains under China's import expansion from a tax perspective, providing decision-making references for the coordinated advancement of tax governance and high-level openness.

Key words：import competition,corporate tax avoidance,tax equity,rade gains

JEL codes: F14, F23, H26

The Journal of World Economy

External Tariff Shocks, Entrepreneurial Attention Allocation, and Technological Innovation

Yu Zhen; Li Yuankun; Li Xun

Abstract:  The  increasingly   complex  international   environment  has  put   forward  more  urgent  requirements for China to accelerate technological innovation. This paper exploits the external shock of U. S. tariff increase on China in 2018 to explore the impact of external tariff shocks on Chinese firms ’ innovation output and efficiency using difference in differences method, and measures entrepreneurs ’ attention allocation through text analysis and Word2vec machine learning techniques, through which we  further analyze the transmission mechanism of external tariff shocks affecting firms ’ innovation. The  results find that: ( 1) External tariff shocks can significantly reduce Chinese firms ’ innovation output and  efficiency;  (2)  Entrepreneurs ’  attention   content   allocation  and  attention  time  allocation  are  two  important channels to produce the above effects; (3) Government increasing R&D subsidies, the media  and analysts reducing excessive attention, and entrepreneurs with high stress resistance can mitigate the  negative effects of external tariff shocks on firms ’ innovation. The conclusion of this paper implies that government need to create a  favorable  policy  orientation   and  public opinion  environment   for entrepreneurs  to   alleviate  external  tariff  pressure   and  thus   enables  them   to  better   exercise  their entrepreneurial spirit in independent innovation.

Key words:  tariff shock,  entrepreneurial  attention  allocation,  firm  innovation,  textual analysis, machine learning

JEL codes: D22, F13, F14