Xiaowen Tian

Negative productivity spillovers and socially responsible investment: The case of FDI in China

Xiaowen Tian — Wed, 03 Oct 2012 22:45:14 PDT

A widening gap between the rich and the poor is found in most, if not all, developing countries that have recently opened up to FDI and is threatening the sustainability of economic progress in these countries. The study finds strong evidence that FDI contributes to the widening gap between rich and poor regions through negative productivity spillovers in a large developing country, and provides some theoretical explanations. The study discusses implications of the findings for transnational corporations in making socially responsible investment and for developing countries in attracting foreign investors to poor regions.

Cross-region FDI productivity spillovers in transition economies: Evidence from China

Xiaowen Tian et al. — Wed, 03 Oct 2012 22:45:13 PDT

Prior studies have failed to examine the spatial dimension of FDI productivity
spillovers in transition economies. Using data from China, this article investigates how FDI in one location may affect the productivity of domestic firms in another location. The study finds strong evidence that FDI in the growth pole on the coast adversely affects the productivity of domestic firms in the peripheral interior. There is also some evidence that FDI in the peripheral interior positively affects the productivity of domestic firms in the growth pole on the coast. The findings indicate that the inflows of FDI contribute to the widening regional disparities in transition economies like China.

Property rights developments and productivity gains in China: A law and economics perspective

Xiaowen Tian et al. — Mon, 24 Jan 2011 16:17:51 PST

Extract:

Property rights developments have been taken as a major reform measure to improve efficiency in transition economies in recent years. The economic rationale was most clearly spelled out by the property rights theory. According to this theory, well-defined property rights can serve as the basis for the proper functioning of markets because they provide incentive; stimulate competition; and engender the efficient use of resources, technology innovation, and output growth in a world of scarcity (Furubotn and Pejovich, 1972). In other words, the more property rights move into private hands, the greater the efficiency gains, and the more rapid is output growth.

Law and investment in China: The legal and business environments after WTO accession

Vai Io Lo et al. — Mon, 24 Jan 2011 16:04:38 PST

The Chinese market is appealing, but the Chinese legal system is very complicated. A basic understanding of Chinese law is absolutely crucial for companies investing in this fast-growing and potentially huge market. Since China is moving toward a socialist market economy and is increasingly integrated into the world market, some aspects of China's commercial law are different from, while others are moving into line with, those of mature market economies.

This book provides an introduction to the Chinese legal system, focusing on laws and regulations on foreign direct investment and highlights recent government policies and measures undertaken to intensify economics reforms so as to meet various challenges arising from China's accession to the World Trade Organization.

Managing international business in China

Xiaowen Tian — Mon, 24 Jan 2011 15:50:08 PST

With the rise of China in the world economy, investors from all over the world are moving to explore business opportunities in this market. Managing international business in a transition economy like China is a daunting challenge. Tian presents a practical guide to major managerial issues faced by foreign investors in the China market including strategic management of Guanxi, entry mode selection, alliance management, negotiation with Chinese partners, human resource management, marketing management, protection of intellectual property rights, and corporate financial management. These issues are analyzed in the light of relevant theoretical models of international business, with reference to current management practices of transnational corporations operating in China. With up-to-date case studies, questions for discussion and recommended readings at the end of each chapter, this book can be used as a textbook for postgraduate programmes in international business or other management disciplines, and as a textbook for executive training programmes.

Managing FDI technology spillovers: A challenge to TNCs in emerging markets

Xiaowen Tian — Mon, 24 Jan 2011 15:50:07 PST

Prior studies on foreign direct investment (FDI) technology spillovers have offered little guidance to transnational corporations (TNCs) on how to protect and exploit technology across borders. The present paper argues that TNCs can manage technology spillovers through selection of entry modes, selection of technologies, and selection of investment priorities in the affiliates they establish in foreign markets. A number of hypotheses are derived from theoretical analyses and are tested against firm-level data from China. The findings of the paper have significant implications for TNCs that face fierce competition from local firms in emerging markets.

Conviction and punishment: Free press and competitive election as deterrents to corruption

Xiaowen Tian et al. — Mon, 26 Jul 2010 22:18:09 PDT

Democratic institutions are not equally effective in curbing corruption. Using a criminal behavior model, this study formulates the hypothesis that corruption offenders, being risk-inclined, are deterred more by conviction-reinforcing democratic institutions than by punishment-reinforcing democratic institutions. Evidence based on cross-country regressions strongly supports this hypothesis, indicating that compared with competitive election, free press is a more effective deterrent to corruption. While shedding light on why corruption remains rampant in some electoral democracies - particularly the illiberal democracies - this study identifies a key to corruption control.

Law for foreign business and investment in China

Vai Io Lo et al. — Wed, 21 Jul 2010 22:41:07 PDT

In trying to establish a presence in China, foreign investors have found it imperative to understand the regulatory environment of this potentially huge market. This book provides an up-to-date overview of the legal framework for doing business in China. It covers such topics as state structure; legislative amendments and enactments on direct foreign investment; the court system; the legal profession; business entities; foreign investment enterprises; contracts; intellectual property; labor and employment; consumer protection; taxation; securities; and dispute resolution.

Apart from explaining legal principles, the book highlights liberalisation measures that China has undertaken to fulfil its WTO commitments; elucidates complicated legal concepts with examples of court decisions; discusses relevant foreign trade and investment polices; and includes a glossary of Chinese terms.

FDI technology spillovers within and across industries: Evidence from China

Xiaowen Tian et al. — Wed, 21 Jul 2010 22:41:07 PDT

Using panel data of 11324 firms in China from 1996 to 1999, the study finds that FDI tends to generate positive technology spillovers to domestic firms within the same industry, but adversely affect productivity of domestic firms in other industries. It is also found that both the positive and the adverse effects are more significant at the local than the national level. Evidence from China thus suggests that FDI technology spillovers are in favor of domestic firms within the same industry rather than domestic firms in other industries, and are most likely to affect domestic firms within the same locality. The finding has significant implications for the study of the interaction between MNEs and local firms in emerging markets.