The Institutional Foundation of Foreign-Invested Enterprises (FIEs) in China
AbstractForeign-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 findings suggest that the debt obligations on the part of the SOEs and the local control of the SOEs promote the growth of FIEs and that some of the foreign direct investment (FDI) inflows result in acquisition of existing assets and shift asset controls from SOEs to FIEs.
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Bibliographic InfoPaper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 264.
Date of creation: 01 Sep 1999
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foreign direct investment; economic transition; China;
Find related papers by JEL classification:
- P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
- P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
This paper has been announced in the following NEP Reports:
- NEP-IFN-2001-12-19 (International Finance)
- NEP-SEA-2001-11-27 (South East Asia)
- NEP-TRA-2001-12-19 (Transition Economics)
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