Efficiency of Foreign-Funded and Domestic Enterprises

Yanrui Wu

Chapter 7 in Productivity, Efficiency and Economic Growth in China, 2008, pp 116-141 from Palgrave Macmillan

Abstract: 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.

Keywords: Foreign Direct Investment; Technical Efficiency; Efficiency Score; Technical Inefficiency; Foreign Direct Investment Inflow (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-22825-2_7

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DOI: 10.1057/9780230228252_7

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