FDI Promotion Policy in China: Governance and Effectiveness

Ng, Linda F.Y.; Tuan, Chyau

doi:10.1111/1467-9701.00399

Cited by 31 publications

(19 citation statements)

References 7 publications

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“…These policies later led to the first establishment of Special Economic Zones and to a later opening of coastal provinces for inward FDI. In this context, the Guangdong province (a top recipient of inward FDI) became the designated showroom (Ng and Tuan, 2001). …”

Section: Insert Figurementioning

confidence: 99%

“…Reflecting different stages of the economic reform process, we see regional variations expressed in the creation of Special Economic zones, Coastal Economic Zones and Central Reform Testing Zones. These policies have also given foreign investors preferential tax treatment (tax rates and tax holidays) to stimulate cooperation between multinational companies and local enterprises (Ng and Tuan, 2001). A beneficial tax rate for foreign direct investors is still offered.…”

Section: Insert Figurementioning

confidence: 99%

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EU–China and the non-transparent race for inward FDI

Oxelheim

Ghauri

2008

Journal of Asian Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EU -China and the non-transparent race for inward FDI AbstractIn this paper it is argued that the restructuring following the stiffer competition stemming from increased global integration will trigger a race between countries to attract inward foreign direct investment (FDI). It is further argued that this race consists of last minute efforts and tailor-made packages designed by governments and their agencies to temporarily improve their country's otherwise inferior profile. This race is non-transparent and the factors used to compete for inward FDI (the 'elements' of the race) deviate from those of long-term efforts to develop a favourable investment climate and improve productivity, as well as medium-term efforts, such as lowering corporate taxes. The paper elaborates on the research problem of properly understanding the drivers of inward FDI in the absence of data on the elements of the non-transparent race. It also addresses the economic policy problem following from this race with a scenario where a large share of global FDI ends up in China, putting the cohesion of the EU at stake and triggering a regional race within China.

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Section: Insert Figurementioning

confidence: 99%

Section: Insert Figurementioning

confidence: 99%

EU–China and the non-transparent race for inward FDI

Oxelheim

Ghauri

2008

Journal of Asian Economics

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“…The launch of the open-door policy in 1978 allowed foreign investment to enter the country through a tightly controlled process that involved only some type of firms (particularly JVs headed by Chinese managers) and specific geographical areas (Fu, 2000;Pearson, 1991;Ng and Tuan, 2001;Chandra, 1999;Kamath, 1990). In particular, the establishment of special economic zones (SEZs) has had a strategic role in shaping the geography of production of the province.…”

Section: The Emergence Of Firms Cities and Sectors Of Excellence: Thmentioning

confidence: 99%

Guangdong Province, China: firms, cities and sectors of excellence

Rubini

Barbieri

2013

Measuring Business Excellence

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About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. SummaryPurpose -The purpose of this paper is to provide an updated picture of the emergence of specific firms, cities and sectors of excellence in one of the best performing industrial areas of China: Guangdong Province. Design/methodology/approach -The paper focuses on a single province-case study and zooms on its leading territories, sectors, firms and policies. Geographical areas, industrial sectors and firms are defined ''of excellence'' according to their contribution to the overall industrial performance of the province.Findings -High industrial performances are not equally spread in the province. They involve specific sectors (such as electronics), areas (Pearl River Delta) and even specific firms (particularly Chinese-owned and SOEs). This picture is in line with the recent policy objectives (support to ODI by national companies, indigenous innovation, national and local champions, restructuring of SOEs) and with the history of preferential industrial development policies.Research limitations/implications -Given the concentration of industrial excellence in the province, there is a need to further investigate the leading actors. Given the persistent policy practice to encourage excellences (areas, sectors and firms), there is a need to further investigate the linkages between provincial/local policies and performances. The empirical test on the existence of a causal link between policies and performances of specific territories and sectors is left for further research.Originality/value -While much of the existing literature concentrates on the impressive industrial growth of China as a whole, the paper stresses the degree of concentration of such growth and the importance of focusing on specific leading actors in order to fully understand the industrial development of the country.

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“…For instance, Ng and Tuan (2001) studied the allocation of FDI in the province of Guangdong and concluded that foreign investors there thought that economic and governmental policies (including factors such as preferential tax policies, the firms' degree of autonomy, and the stability of economic policies) and the governmental administration (including factors such as the efficiency and transparency of the governmental administration and the government's ability to regulate the economy) were the most important factors for investment decisions.…”

Section: Literature Review On Fdi Determinants With a Focus On Chinamentioning

confidence: 99%

“…Even though much has already been written about how to attract FDI, and its profile in China (for instance, Broadman and Sun 1997;Fung et al 2005;Zhang 2000Zhang , 2001Ng and Tuan 2001;Luo, Brennan, Liu, and Luo 2008), only a few studies have quantitatively analysed the importance of human capital as a determining factor of FDI in China. The empirical evidence supporting this hypothesis is lacking and it has not yet been possible to clearly determine the relevance of this factor, based on representative and broad samples.…”

Section: Introductionmentioning

confidence: 99%

Is human capital relevant in attracting innovative foreign direct investment to China?

Teixeira

Heyuan

2012

Asian Journal of Technology Innovation

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The impact of human capital on foreign direct investment has been assessed in an essentially descriptive manner. Most quantitative studies focus on the macroeconomic level. Microeconomic studies are scarce internationally and even more so in the case of China. Based on a survey of innovative firms located in China, this study assesses the importance of human capital in attracting foreign direct investment (FDI) to China. Using a sample of 77 innovative firms, and logistic estimation techniques, we concluded that even though human capital does not constitute a direct factor in attracting FDI to China, it is a positive indirect factor through firms' R&D efforts. Moreover, we found that connections with universities have a positive impact on the attraction of FDI, although the impact of human capital on the attraction of FDI is not sustained on the basis of additional contacts with universities. Evidence gathered suggests that it is important that public authorities recognize the interconnections between education and innovation policies and the implementation of FDI policies -human capital is only capable of attracting innovative foreign capital when associated with high levels of R&D.

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FDI Promotion Policy in China: Governance and Effectiveness

Cited by 31 publications

References 7 publications

EU–China and the non-transparent race for inward FDI

EU–China and the non-transparent race for inward FDI

Guangdong Province, China: firms, cities and sectors of excellence

Is human capital relevant in attracting innovative foreign direct investment to China?

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