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Efficiency of Foreign-Funded and Domestic Enterprises

In: Productivity, Efficiency and Economic Growth in China

Author

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  • Yanrui Wu

    (University of Western Australia)

Abstract

Since the inception of economic reform in 1978, China has experienced almost three decades of rapid growth of foreign direct investment (FDI). The importance of FDI inflows for the growth of the Chinese economy is well recognized (Wu, 2004). However, one may ask how efficient foreign affiliates are in the Chinese economy. This chapter presents an analysis of this issue. In particular, it focuses on comparing foreign-funded enterprises (FFEs) with stated-owned enterprises (SOEs) among the Chinese regions. The performance of FFEs in the Chinese economy provides an indicator of the efficiency of FDI in the country.

Suggested Citation

  • Yanrui Wu, 2008. "Efficiency of Foreign-Funded and Domestic Enterprises," Palgrave Macmillan Books, in: Productivity, Efficiency and Economic Growth in China, chapter 7, pages 116-141, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-22825-2_7
    DOI: 10.1057/9780230228252_7
    as

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