IDEAS home Printed from https://ideas.repec.org/a/bpj/buspol/v9y2007i1n1.html
   My bibliography  Save this article

Ownership Biases and FDI in China: Evidence from Two Provinces

Author

Listed:
  • Huang Yasheng

    (MIT Sloan School of Management)

Abstract

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.

Suggested Citation

  • Huang Yasheng, 2007. "Ownership Biases and FDI in China: Evidence from Two Provinces," Business and Politics, De Gruyter, vol. 9(1), pages 1-47, May.
    • Handle: RePEc:bpj:buspol:v:9:y:2007:i:1:n:1
    DOI: 10.2202/1469-3569.1177
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1469-3569.1177
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.2202/1469-3569.1177?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li, Jiaming & Li, Yuheng & Zhang, Wenzhong & Yu, Jianhui, 2018. "Imbalanced ownership transformation and land use within an urban area: a case study of Beijing," Land Use Policy, Elsevier, vol. 74(C), pages 240-247.
    2. Jiangning Zhao & Bin Zhang, 2017. "Chintrepreneurship ¨C The China-way of Entrepreneurship Government Intervention, Seedling Approach ¨C A Network-based Model of Entrepreneurship," Management and Organizational Studies, Management and Organizational Studies, Sciedu Press, vol. 4(1), pages 30-66, January.
    3. Wang, Xiaozu & Xu, Lixin Colin & Zhu, Tian, 2011. "Foreign direct investment under weak rule of law : theory and evidence from China," Policy Research Working Paper Series 5790, The World Bank.
    4. Huan Yang & Xinning Zhang, 2023. "Persistence of culture: how the entrepreneurial culture of origin contributes to migrant entrepreneurship," Small Business Economics, Springer, vol. 61(3), pages 1179-1204, October.
    5. Zhang, Chuanchuan, 2020. "Clans, entrepreneurship, and development of the private sector in China," Journal of Comparative Economics, Elsevier, vol. 48(1), pages 100-123.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:buspol:v:9:y:2007:i:1:n:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.