15 April 2021 1 6K Report

More precisely: How much of the stock of physical capital in the USA is owned by Chinese households and vice versa?

Background: I want to calibrate a simple two country model of the USA and China with mobile capital. To do this, I need data on foreign ownership of physical capital (or bilateral foreign direct investment) between the two countries.

In the model I assume that output Y is produced using physical capital K and human capital H with a neoclassical production function, i.e. Y = F(K,H). I need to know how much of the U.S. capital stock K_usa is owned by Chinese households and how much of the capital stock in China K_china is owned by U.S. households.

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