Ethnic Chinese networks and international investment: evidence from inward FDI in China

Gao, Ting

doi:10.1016/s1049-0078(03)00098-8

Cited by 155 publications

(113 citation statements)

References 12 publications

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“…Similarly, Jean et al's (2011) note that ethnic ties were the determinant factors for Taiwanese business groups' location of investment decisions in the context of Chinese market. Internationalizing firms can utilize these ties to interact and develop strong connections with a diverse network partners, including suppliers, customers as well as government (Gao, 2003). Yet to date there are limited studies which have examined the role of ethnic ties along with business network ties in influencing EM-SMEs internationalization (Jean et al, 2011;Zhang et al, 2016).…”

Section: Network In the Internationalization Processmentioning

confidence: 99%

Internationalisation process of Chinese SMEs: the role of business and ethnic-group-based social networks

Lew

Khan

Rao‐Nicholson

et al. 2016

IJMCS

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This article examines how emerging market small and medium-sized enterprises (EM-SMEs) leverage their social network relationships for their internationalization process. Drawing from the internationalization process and network literature, it investigates four Chinese SMEs which have effectively entered foreign markets. The sample of Chinese manufacturing SMEs provides a valuable reference to compare and contrast the challenges and opportunities that foreign-networkconstrained SMEs face in their internationalization process. The findings suggest that both business and ethnic group-based social ties as well as the strength of these networks play an important role in influencing the internationalization of Chinese SMEs. Particularly, the findings illustrate the importance and complementary role of ethnic ties (i.e., social networks), and relationships with multinationals (i.e., business networks) that enable the internationalization process of the EM-SMEs.

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Section: Network In the Internationalization Processmentioning

confidence: 99%

Internationalisation process of Chinese SMEs: the role of business and ethnic-group-based social networks

Lew

Khan

Rao‐Nicholson

et al. 2016

IJMCS

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“…India's FDI has not been concentrated from any one nation or region. Some studies have identified overseas Chinese as an important source of FDI into China (Gao, 2003, Lo & Liu 2009) whereas this has been more limited in India (Lall, 2001). …”

Section: The Role Of Government and Institutionsmentioning

confidence: 99%

Competitiveness in India and China: the FDI puzzle

Prime

Subrahmanyam

Lin

2012

Asia Pacific Business Review

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Given their growth records, large markets, and reformed economic systems, both China and India appear to be equally likely candidates for foreign direct investment (FDI). Yet, China has received substantially more FDI. The literature comparing FDI in these two countries is small, and does not provide conclusive evidence to explain this puzzle. Applying the Porterian framework of the competitiveness of nations to compare China and India, we garner evidence that differences in demand, factor conditions and firm strategy, structure and rivalry are not sufficient to explain the differential in the two countries' FDI flows. Differences in related and supporting industries, as well as Porter's other two factors-government and chance factors-are more compelling. We identify China's early entry into East Asian production networks in the 1980s as a key factor pushing China ahead of India in terms of FDI. We argue that this coincidental mix of timing and geography (Porter's 'chance' factor), pushed forward in China by establishing special economic zones, gave China a sustainable competitive advantage for the following two decades. What is implied from these findings is that China's FDI sources have been much larger and heavily slanted towards East Asia and manufacturing, while India, having missed this particular historical phase, needed to find an alternate route to development and global competitiveness. 2Competitiveness in India and China: The FDI puzzle

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“…Docquier and Lodigiani (2010) Kugler and Rapoport (2007); Bhattacharya and Groznik (2008), and Foad (2012) for analysis of US. Tong (2005) and Gao (2003) focused on the Chinese case. Other countries' experiences have also been analysed: Buch et al (2006) (Germany), Gheasi et al (2013) (UK), and Murat and Pistoresi (2009) (Italy).…”

Section: Introductionmentioning

confidence: 99%

Homeward bound FDI: Are migrants a bridge over troubled finance?

2016

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Migrants can lower cross-border investment barriers, help investors by providing information about their homeland and reduce transaction costs by sharing expertise on regulations, customs and procedures. In addition to generating these well-known networking effects, migrants can also provide valuable information about local finance, thereby easing the credit constraints foreign investors faced during the 2007 financial crisis. This paper sheds new light on the underlying mechanisms through which migration may affect foreign investment in the migrant's homeland by distinguishing between the effects on FDI's intensive and extensive margins. Gravity estimates for 140 countries for the period 2003-2012 suggest that migrants exert a positive effect on bilateral FDI. However, financial constraints moderate this effect, primarily through the extensive margin. Additionally, quantile regression reveals that the interaction between migration and credit constraints is significant only for the lower levels of FDI. Our findings contribute to a better understanding of the interplay among migration, financial constraints and FDI.

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Ethnic Chinese networks and international investment: evidence from inward FDI in China

Cited by 155 publications

References 12 publications

Internationalisation process of Chinese SMEs: the role of business and ethnic-group-based social networks

Internationalisation process of Chinese SMEs: the role of business and ethnic-group-based social networks

Competitiveness in India and China: the FDI puzzle

Homeward bound FDI: Are migrants a bridge over troubled finance?

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