Targettng Transaction Costs: An Evaluation of Investment Incentive Policies in China's Foreign Trade Zones

Yvonne Ying, Scott Rozelle and Melinda Barlow

No 271349, 1991 Annual Meeting, August 4-7, Manhattan, Kansas from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper explores the effectiveness of incentive policies in attracting foreign investment in China's recently opened "free" economic zones. A transaction costminimization conceptual framework is used to specify an empirical model. Crosssection data from 132 regions are used for testing the hypothesis that transaction cost-reducing policies are more effective in attracting investment than other tax incentive and promotional policies. The hypothesis is validated.

Keywords: Agricultural and Food Policy; International Relations/Trade (search for similar items in EconPapers)
Pages: 16
Date: 1991-08-04
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea91:271349

DOI: 10.22004/ag.econ.271349

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