The Institutional Foundation of Foreign-Invested Enterprises (FIEs) in China

Yasheng Huang

No 264, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

Abstract: Foreign-invested enterprises (FIEs) are now an important component of the Chinese economy. Since 1992, the growth of FIEs has been exponential. However our understanding of the institutional factors driving the FIE growth remains limited. This paper uses data from 39 industries in China for a period of three years (1995-1997) to explore the institutional foundation of the FIE growth. Our findings suggest that the debt obligations on the part of the SOEs and the local control of the SOEs promote the growth of FIEs and that some of the foreign direct investment (FDI) inflows result in acquisition of existing assets and shift asset controls from SOEs to FIEs.

Keywords: foreign direct investment; economic transition; China (search for similar items in EconPapers)
JEL-codes: F23 P26 P33 (search for similar items in EconPapers)
Pages: pages
Date: 1999-09-01
New Economics Papers: this item is included in nep-ifn, nep-sea and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:wdi:papers:1999-264

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