Using firm-level data from an Enterprise Survey of World Bank, this paper is designed to test how policy variables can affect inward foreign direct investment (“FDI”) in China. After excluding the problems of sample selection and endogeneity, the result shows that investment promotion agencies (IPAs) and investment incentive zones (IIZs) have significant positive effect on absorbing FDI in Chin...

Foreign-invested enterprises (FIEs) are now an important component of the Chinese economy. Since 1992, the growth of FIEs has been exponential. However our understanding of the institutional factors driving the FIE growth remains limited. This paper uses data from 39 industries in China for a period of three years (1995-1997) to explore the institutional foundation of the FIE growth. Our findin...

Industry cross-sectional studies of spillover effects from inward foreign direct investment (FDI) have reported many conflicting findings. This study focuses on a single sub-sector to investigate whether more robust findings can be discerned, and whether spillovers decline over time. Data for China’s electronics industry for 41 sub-sectors for the years 1996, 1998, 2000 and 2001 are employed. T...

CEO incentive contracts are commonplace in China but their incidence varies significantly across Chinese cities. We show that city and provincial policy experiments help explain this variance. We examine the role of two policy experiments: the use of Special Economic Zones (SEZs) to attract foreign direct investment (FDI), and the rate at which state owned enterprises (SOEs) were privatised. CE...

This whitepaper discusses the internationalization of small and medium-sized enterprises. Furthermore it contains subjects like internationalization of SMEs in the time of globalization, reasons for internationalization, SMEs’ motives for internationalization, different forms and models of SMEs internationalization and dealing with internationalization by SMEs. INTERNATIONALIZATION OF SMES IN T...

Through an industry-level analysis of Chinese largeand medium-size manufacturing enterprises over the period of 1996–2001, this article investigates the direct and interactive contributions of four technology acquisition channels to industry performances in terms of innovation performance and productivity. These channels include in-house R&D, foreign technology transfer, domestic technology tra...

Privatization has been the most controversial policy dominating the political agenda of many countries around the world. For instance, in the 1980s privatization were the policy choice and preferences as well as the new wave of conservative market reforms beginning in the west with the Thatcher government in the United Kingdom in 1979 and the Regan government in the United States the following ...

The existing empirical literature on foreign direct investment (FDI) entry strategies tends to allow a binary choice between wholly owned enterprises (WOEs) and equity joint ventures (EJVs) or between greenfield investment and acquisition only. The current study establishes a multinomial logit model for the choice from all four FDI entry modes in China. Hypotheses involving country-, industryan...

A conceptual framework is developed, bringing together entry mode, the influence of state officials, and the adoption of a customer-driven orientation in order to explain the performance of foreign-invested firms in a transitional economy. The model is tested on a sample of firms in China across eight provinces and cities, spread across the relatively developed South Coast, the Central Belt for...