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Chinese foreign direct investment in Brazil and its regional socioeconomic consequences

Grant number: 21/01344-1
Support type:Scholarships in Brazil - Scientific Initiation
Effective date (Start): July 01, 2021
Effective date (End): June 30, 2022
Field of knowledge:Engineering - Production Engineering - Economic Engineering
Principal researcher:Herick Fernando Moralles
Grantee:Caio Gragnani Jancar
Home Institution: Centro de Ciências Exatas e de Tecnologia (CCET). Universidade Federal de São Carlos (UFSCAR). São Carlos , SP, Brazil

Abstract

As a fundamental part of the globalization process, foreign direct investment - FDI has acted as a catalyst for changes in the world economy in recent decades. Furthermore, the literature points out that foreign direct investment is responsible for knowledge spillovers, which can increase the efficiency and competitiveness of local organizations, as well as impact regional social indicators. However, little research has been done on this topic in Brazil, especially when considering that this country is the largest recipient of FDI in Latin America and that China is one of Brazil's biggest trading partners. This paper seeks to understand how Chinese FDI affects the regional socio-economic environment of São Paulo, therefore evaluating regional impacts such as productivity, employment, income, health, e participation of the extractive industry in the municipal economic base. For this purpose, the first regional database on FDI intensity in the State of São Paulo will be employed, built in the FAPESP 2019/1990-5 project, in which the present proposal is inserted. The results of this research will enable a greater understanding of how companies influence their surroundings and, consequently, will help to organize more efficient policies. (AU)

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