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Reciprocity and Public Opposition to Foreign Direct Investment

64 Pages Posted: 7 Jun 2017 Last revised: 15 Sep 2017

Adam S. Chilton

University of Chicago - Law School

Helen V. Milner

Princeton University - Woodrow Wilson School of Public and International Affairs; Princeton University - Department of Political Science

Dustin H. Tingley

Harvard University - Department of Government

Date Written: July 18, 2017

Abstract

Prior International Political Economy (IPE) public opinion research has primarily examined how economic and socio-cultural factors shape individuals’ views on the flows of goods, people, and capital. What has largely been ignored is whether individuals also care about rewarding or punishing foreign countries for their policies on these subjects. To test this possibility, we administered a series of conjoint and traditional survey experiments in the United States and China that examined how reciprocity influences opposition to foreign acquisitions of domestic companies. We find that reciprocity is an important determinant of public opinion on the regulation of foreign investments. This suggests the need to consider the policies that other countries adopt when trying to explain public attitudes towards global economic integration.

Keywords: International Political Economy; Foreign Direct Investment; Mergers & Acquisitions; Reciprocity; Public Opinion; Survey Experiments

Suggested Citation

Chilton, Adam S. and Milner, Helen V. and Tingley, Dustin H., Reciprocity and Public Opposition to Foreign Direct Investment (July 18, 2017). British Journal of Political Science, Forthcoming; University of Chicago Coase-Sandor Institute for Law & Economics Research Paper No. 808. Available at SSRN: https://ssrn.com/abstract=2981073

Adam S. Chilton (Contact Author)

University of Chicago - Law School ( email )

1111 E. 60th St.
Chicago, IL 60637
United States

HOME PAGE: http://www.adamchilton.org

Helen V. Milner

Princeton University - Woodrow Wilson School of Public and International Affairs ( email )

Princeton University
Princeton, NJ 08544-1021
United States

Princeton University - Department of Political Science ( email )

Corwin Hall
Princeton, NJ 08544-1013
United States
609-258-0181 (Phone)

Dustin H. Tingley

Harvard University - Department of Government ( email )

1737 Cambridge Street
Cambridge, MA 02138
United States

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