The Internationalization of Singaporean Firms into China: Entry Modes and Investment Strategies

Chia-Zhi Tan and Henry Wai-chung Yeung

Chapter 10 in Globalization of Chinese Business Firms, 2000, pp 220-243 from Palgrave Macmillan

Abstract: Abstract The promotion of overseas investment was mounted when, in 1985, Singapore registered its first GDP decline since independence. At that time, the Economic Committee for Overcoming Recession (ECOR) identified overseas investment and the development of offshore business opportunities as a long-term solution to the lack of investment opportunities in Singapore. One basic rationale for the need of overseas investment by Singaporean firms is that geographic and demographic factors are limiting domestic economic growth potential (Asian Intelligence, 1993; Régnier, 1993; Tan, 1995; Yeung, 1998a, 1999b). Singapore is limited by its small population size and small market, as well as limited labour and land. Hence there is a need to develop an ‘external economy’ for Singapore. The plan in 1985 was to globalize Singaporean firms into Europe and North America. By the early 1990s, however, there was a change in the geographical focus of overseas investment from an international to a regional scale because of the lack of success in Singapore’s globalization drive and the emergence of the growth potential in many East Asian and Southeast Asian countries. As a result, it was considered wise to promote Singaporean investments in Asian ‘countries with which Singapore has close historical and cultural links, which are achieving steady economic growth, and which have adopted policies welcoming foreign investment’ (Kanai, 1993, p. 21).

Keywords: Joint Venture; Entry Mode; Parent Firm; Hainan Province; Chinese Business (search for similar items in EconPapers)
Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:palchp:978-0-230-59992-5_10

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230599925

DOI: 10.1057/9780230599925_10

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().