Ownership Biases and FDI in China: Evidence from Two Provinces

2007 ◽  
Vol 9 (1) ◽  
pp. 1-45 ◽  
Author(s):  
Yasheng Huang
Keyword(s):  
Economic Development ◽  
Empirical Test ◽  
Private Firm ◽  
The Other ◽  
Foreign Firms ◽  
Private Firms ◽  
Growth Opportunities ◽  
Firm Level ◽  
Relative Property ◽  
Future Growth

Jiangsu and Zhejiang are of two of China's most prosperous and dynamic provinces. This paper first presents a factual account of two empirical phenomena: 1) FDI has played a more substantial role in the economic development of Jiangsu than in Zhejiang, and 2) ownership biases against domestic private firms in Jiangsu were more substantial than in Zhejiang. The paper hypothesizes that there is a connection between these two empirical phenomena. Specifically, ownership biases against domestic private firms increase preferences for FDI because FDI provides a measure of relative property rights security. Thus a biased domestic private firm has an incentive to move its assets and/or future growth opportunities to the foreign sector. The paper uses two private-sector surveys—one conducted in 1993 and the other in 2002—to provide an empirical test of this hypothesis. Our analysis shows, controlling for a variety of firm-level attributes and industry and regional characteristics, those private firms which perceive ownership biases to be more severe are more likely to form joint ventures with foreign firms.

Is a Corruption Crackdown Really Good for the Economy? Firm-Level Evidence from China

2020 ◽  
Author(s):  
Zhiyuan Chen ◽  
Xin Jin ◽  
Xu Xu
Keyword(s):  
Negative Impact ◽  
Foreign Firms ◽  
Private Firms ◽  
Firm Level ◽  
Personal Connections ◽  
Before And After ◽  
Short Run ◽  
The Government ◽  
Negative Impacts ◽  
The Impact

Abstract We study the impact of anticorruption efforts on firm performance, exploiting an unanticipated corruption crackdown in China’s Heilongjiang province in 2004. We compare firms in the affected regions with those in other inland regions before and after the crackdown. Our main finding is an overall negative impact of the crackdown on firm productivity and entry rates. Furthermore, these negative impacts are mainly experienced by private and foreign firms, while state-owned firms are mostly unaffected. We present evidence concerning two potential explanations for our findings. First, the corruption crackdown may have limited bribery opportunities that helped private firms operate. Second, the corruption crackdown may have interfered with personal connections between private firms and government officials to a greater extent than institutional connections between state-owned firms and the government. Overall, our findings suggest that corruption crackdowns may not restore efficiency in the economy, but instead lead to worse economic outcomes, at least in the short run (JEL L2, M1, O1).

scholarly journals Effects of Discrimination of Expectant Ladies on the Economic Performance of Private Firms within the Kenyan Context

2014 ◽  
Vol 4 (1) ◽  
pp. 266
Author(s):  
Jaffer Fatma Ahmed
Keyword(s):  
Economic Development ◽  
Work Environment ◽  
Economic Performance ◽  
Gender Discrimination ◽  
Statistical Data ◽  
The Other ◽  
Private Firms ◽  
Business World ◽  
Private Organizations ◽  
Gain Access

Gender discrimination is currently highly affecting the economic performance of Indian-owned private firms within the Kenyan context. This form of discrimination is particularly featuring expectant ladies who are already working or are currently trying to gain access into the work environment within private organizations. This kind of discrimination has not only affected the expectant ladies, but it has also hindered economic development within the firms that allow this practice to continue. This is evident by the ladies’ careers being halted because they are expectant and hence considered unable to deliver towards the organizations’ objectives. On the other hand, the organization ends up losing valuable employees who would have played a major role in the growth of such firms. Moreover, when some of the ladies discriminated against are bold enough to go to court, the firm losses a lot of money and their identity in the business world is also tarnished, as they have to compensate the lady who is the victim. Discrimination of ladies on the basis of being expectant has been quietly endured by the victims involved, silently suffering; with very few trying to ensure their rights are protected, as per the Kenyan constitution, under the Employment Act, 2007. Data will be collected using questionnaires, interviews and through research done earlier on Gender discrimination. Research will also involve statistical data that has been analyzed on gender discrimination and review of how the practice is affecting our society over the years.

scholarly journals A Dilemma between Firm Survivability and Business Ethic in Indonesia

INTEGRITAS ◽  
2018 ◽  
Vol 4 (2) ◽  
pp. 21
Author(s):  
Denti Irtiyani
Keyword(s):  
Economic Development ◽  
Business Ethic ◽  
Public Perception ◽  
Business Environment ◽  
Private Firm ◽  
Primary Concern ◽  
Firm Level ◽  
Government Regulations ◽  
The Public ◽  
Speed Up

in the 1998 economic crisis, the public perception on corruption in Indonesia was changed almost overnight in 1998. After almost 30 years of recognizing corruption as economically benign or even beneficial to the economic development, the public opinion was now shifting toward a concern that corruption hampered economic development (MacIntyre [2001]). What has been happening with small corruption at the firm level is however relatively unknown. For a private firm the primary concern of stakeholders from management, employees and shareholders is sustainability. Business environment however is not always friendly. Uncertainty could come from changes in government regulations. Facing the possibility of business stoppage, business ethics and illegality may have little meaning, many firms would have no choice but to pay grease money to speed up the process provided that the amount is “small.”  

Eurasian "Theory of Economy Management" as an Organic Part of the Russian Economic School

2003 ◽  
pp. 95-110
Author(s):  
M. Voeykov
Keyword(s):  
Economic Development ◽  
Theoretical Model ◽  
Initial Step ◽  
State Regulation ◽  
Soviet Economy ◽  
The Other ◽  
Large Share ◽  
Organic Part ◽  
Two Sides ◽  
Enterprise Activity

The original version of "the theory of economy management", developed in the 1920s by Russian economists-emigrants who called themselves "Eurasians" (N. Trubetskoy, P. Savitskiy, etc.) is analyzed in the article. They considered this theory to be the basis of the original Russia's way of economic development. The Eurasian theory of economy management focuses on two sides of enterprise activity: managerial as well as social and moral. The Eurasians accepted the Soviet economy with the large share of state regulation as the initial step of development. On the other hand they paid much attention to the private sector activity. Eurasians developed a theoretical model of the mixed economy which can be attributed as the Russian economic school.

Structuralism as a Pamphlet (On the Book by E. Reinert “How Rich CountriesGot Rich... And Why Poor Countries Stay Poor”. 2nd ed.)

2014 ◽  
pp. 147-153
Author(s):  
P. Orekhovsky
Keyword(s):  
Economic Theory ◽  
Economic Development ◽  
Structural Analysis ◽  
Increasing Returns ◽  
The Other ◽  
Static Theory ◽  
Poor Countries ◽  
Historical School ◽  
Socio Economic Development ◽  
The Relationship

The review outlines the connection between E. Reinert’s book and the tradition of structural analysis. The latter allows for the heterogeneity of industries and sectors of the economy, as well as for the effects of increasing and decreasing returns. Unlike the static theory of international trade inherited from the Ricardian analysis of comparative advantage, this approach helps identify the relationship between trade, production, income and population growth. Reinert rehabilitates the “other canon” of economic theory associated with the mercantilist tradition, F. Liszt and the German historical school, as well as a reconside ration of A. Marshall’s analysis of increasing returns. Empirical illustrations given in the book reveal clear parallels with the path of Russian socio-economic development in the last twenty years.

Choice Of Technique And The Volume Of Saving (A Re-Examination Of The Cobb-Douglas Model)

1968 ◽  
Vol 8 (4) ◽  
pp. 606-617
Author(s):  
Mohammad Anisur Rahman
Keyword(s):  
Economic Development ◽  
Production Function ◽  
Development Policy ◽  
Social Goals ◽  
The Other ◽  
Economic Development Policy ◽  
Labour Intensity ◽  
The One ◽  
Choice Of Technique ◽  
The Relationship

The purpose of this paper is to re-examine the relationship between the degree of aggregate labour-intensity and the aggregate volume of saving in an economy where a Cobb-6ouglas production function in its traditional form can be assumed to give a good approximation to reality. The relationship in ques¬tion has an obviously important bearing on economic development policy in the area of choice of labour intensity. To the extent that and in the range where an increase in labour intensity would adversely affect the volume of savings, a con¬flict arises between two important social objectives, i.e., higher rate of capital formation on the one hand and greater employment and distributive equity on the other. If relative resource endowments in the economy are such that such a "competitive" range of labour-intensity falls within the nation's attainable range of choice, development planners will have to arrive at a compromise between these two social goals.

Investing in a Wealthy Resource-Based Colonial Economy: International Business in Australia before World War I

2020 ◽  
Vol 94 (2) ◽  
pp. 321-346
Author(s):  
Simon Ville ◽  
David Tolmie Merrett
Keyword(s):  
Economic Development ◽  
World War I ◽  
Natural Resources ◽  
International Business ◽  
Business Community ◽  
Foreign Firms ◽  
Portfolio Investment ◽  
World War ◽  
Multinational Activity ◽  
Colonial Economy

The article is a rare investigation into multinational activity in a wealthy resource-based colonial economy toward the end of the first wave of globalization. It challenges the conventional wisdom that multinationals had a limited presence in pre-1914 Australia, where government loans and portfolio investment from Britain into infrastructural and primary industries dominated. Our new database of nearly five hundred foreign firms, from various nations and spread across the host economy, shows a thriving and diverse international business community whose agency mattered for economic development in Australia. Colonial ties, natural resources, stable institutions, and high incomes all attracted foreign firms.

scholarly journals Emergence of cultural intelligence and global mindset capital: a multilevel model

2016 ◽  
Vol 24 (2) ◽  
pp. 106-122 ◽  
Author(s):  
Jase R. Ramsey ◽  
Amine Abi Aad ◽  
Chuandi Jiang ◽  
Livia Barakat ◽  
Virginia Drummond
Keyword(s):  
Multilevel Model ◽  
Cultural Intelligence ◽  
The Other ◽  
Global Mindset ◽  
Firm Level ◽  
Content Type ◽  
Individual Level ◽  
Other Hand ◽  
Underlying Mechanisms ◽  
Conceptual Study

Purpose The purpose of this paper is to establish under which conditions researchers should use the constructs cultural intelligence (CQ) and global mindset (GM). The authors further seek to understand the process through which these constructs emerge to a higher level and link unit-level knowledge, skills and abilities (KSAs) capital to pertinent firm-level outcomes. Design/methodology/approach This paper is a conceptual study with a multilevel model. Findings This paper differentiates two similar lines of research occurring concordantly on the CQ and GM constructs. Next, the authors develop a multilevel model to better understand the process through which CQ and GM emerge at higher levels and their underlying mechanisms. Finally, this paper adds meaning to the firm-level KSAs by linking firm-level KSAs capital to pertinent firm-level outcomes. Research limitations/implications The conclusion implies that researchers should use CQ when the context is focused on interpersonal outcomes and GM when focused on strategic outcomes. The multilevel model is a useful tool for scholars to select which rubric to use in future studies that have international managers as the subjects. The authors argue that if the scholar is interested in an individual’s ability to craft policy and implement strategy, then GM may be more parsimonious than CQ. On the other hand, if the focus is on leadership, human resources or any other relationship dependent outcome, then CQ will provide a more robust measure. Practical implications For practitioners, this study provides a useful tool for managers to improve individual-level commitment by selecting and training individuals high in CQ. On the other hand, if the desired outcome is firm-level sales or performance, the focus should be on targeting individuals high in GM. Originality/value This is the first theoretical paper to examine how CQ and GM emerge to the firm level and describe when to use each measure.

Diaspora Capitalism and the Homeland: Australian Chinese Networks into China

1996 ◽  
Vol 5 (2) ◽  
pp. 239-273
Author(s):  
Constance Lever-Tracy ◽  
David Ip
Keyword(s):  
Twentieth Century ◽  
Economic Development ◽  
Global Capitalism ◽  
The Other ◽  
The World ◽  
World Economic ◽  
Late Twentieth ◽  
Late Twentieth Century ◽  
Opening Up

This article explores two new and related phenomena of the late twentieth century that will surely play a major role in shaping the world of the twenty-first: the economic development and opening up of China, and the emergence onto the world economic stage of diaspora Chinese businesses, producing a significant, identifiably Chinese current within global capitalism. Each of these has, we believe, been crucial and perhaps indispensable to the other.

scholarly journals Spatial Approach to Diseases of Affluence Epidemiology and Regional Economic Development

2016 ◽  
Vol 16 (2) ◽  
pp. 203-218
Author(s):  
Alicja Olejnik ◽  
Agata Żółtaszek
Keyword(s):  
Economic Development ◽  
Technological Development ◽  
Medical Personnel ◽  
Developed Countries ◽  
Mortality Rates ◽  
Economic Resources ◽  
The Other ◽  
Financial Resources ◽  
Highly Qualified ◽  
Spatial Approach

Abstract Diseases of affluence (of the 21st c.) by definition should have higher prevalence and/or mortality rates in richer and more developed countries than in poorer, underdeveloped states (where diseases of poverty are more common). Therefore, it has been indicated that it is civilizational progress that makes us sick. On the other hand, substantial financial resources, highly qualified medical personnel, and the cutting-edge technology of richer states, should allow for effective preventions, diagnostics, and treatment of diseases of poverty and of affluence. Therefore, a dilemma arises: is progress making us sick or curing us? To evaluate the influence of country socioeconomic and technological development on population health, a spatial analysis of the epidemiology of diseases of affluence and distribution of economic resources for European NUTS 2 has been performed. The main aim of this paper is to assess, how regional diversity in the prevalence of diseases of affluence is related to the regional development of regions.

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