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Foreign Direct Investment Strategies and Transnational Development in Zhejiang

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Author Info

  • Huilong Wang

    ()
    (Shaoxing University in China)

  • Shaohua Wang

    ()
    (Zhejiang University of Technology in China)

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    Abstract

    In recent years, due to the rise of labour costs, the RMB has appreciated. The government encourages private enterprise to make foreign investment. Increasingly, private enterprises in Zhejiang start to develop through foreign direct investment(FDI). This study finds that major FDI modes of the private enterprises from Zhejiang include: the establishment of overseas processing bases, international marketing network, international R&D institutions, overseas acquisition, and cluster FDI.. By means of leadership, differentiation, and cluster FDI strategy, the private enterprises become engaged in local production network, innovation, and social development.These realized economic sustainable development and enhanced global competitiveness.

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    Bibliographic Info

    Article provided by Ottawa United Learning Academy in its journal Transnational Corporations Review.

    Volume (Year): 2 (2010)
    Issue (Month): 4 (December)
    Pages: 116-125

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    Handle: RePEc:oul:tncr09:v:2:y:2010:i:4:p:116-125

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    Keywords: FDI; cluster investment; production network; innovation;

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