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Political Risk and Firm Exit

Pekingology

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What Do We Know About the Trade War?

The paper sentially is trying to see the impact of politica risk on the net, you know, on the exits of foreign companies in china. And indeed, i there's a higher rate of exit. But what's puzzling when you unpack this is that the tariffs are contributing to less than one per cent of the predicted probability of exit for a given firm. The strongest predictors of whether a company leaves or stays in is how long they've been in china and how big af investment entrenchment they have. Right before and after the surrive this trade war,. I think the trade war exasperates all sort of churn over all in the china market. We don

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