Does Ethnicity Pay

Yasheng Huang, Li Jin and Yi Qian

No 16294, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Most of the economic analyses of the overseas-Chinese network focus on trade and investment flows at the country level. In this paper, we analyze the effects of the ethnic Chinese network at the firm level. Contrary to the conventional wisdom, we find that ethnic-Chinese FDI firms in China in fact underperform non-ethnic-Chinese FDI firms. We also find that the performance of ethnic-Chinese firms deteriorates over time. We present evidence consistent with the hypothesis that ethnic-Chinese firms under-invest in those firm attributes that may enhance long-term performance, such as human capital and technology. Our findings raise both empirical and normative implications of ethnic ties.

JEL-codes: F23 (search for similar items in EconPapers)
Date: 2010-08
Note: PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published as Huang, Yasheng, Li Jin and Yi Qian. 2013. Does Ethnicity Pay? Evidence From Overseas Chinese Fdi In China. The Review of Economics and Statistics. 95(3): 868–883

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