Legal Traditions and Foreign Ownership Modes: Evidence from China

Quanlin Gu, Shaoan Huang and Yupeng Shi

Asian Economic Journal, 2015, vol. 29, issue 4, 365-384

Abstract: type="main">

Using census data gathered in 2001, the present paper examines how legal traditions influence foreign investors’ choice of ownership modes in China. The study finds that, first, investors from economies sharing the same legal origin with China tend to select ownership modes with a relatively high level of foreign control. That is, such foreign direct investment (FDI) firms are more likely to be wholly owned enterprises or joint ventures with relatively large foreign shares. Second, similarities in legal enforcement between China and the home economies correlate positively with high foreign control. Third, the effects of legal traditions on ownership modes are relatively weak for new entrants compared to their forerunners, probably owing to the continuous improvement in China's business and law institutions.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1111/asej.12079 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:asiaec:v:29:y:2015:i:4:p:365-384

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1351-3958

Access Statistics for this article

Asian Economic Journal is currently edited by Sung Yun-Wing and Shigeyuki Abe

More articles in Asian Economic Journal from East Asian Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().