When Do Local Firms Benefit from Inward Foreign Direct Investment? A Longitudinal Study of China's Manufacturing Sector Covering 1998–2007

Park, Byung Il; Xiao, Shufeng

doi:10.1002/tie.21749

Cited by 5 publications

(3 citation statements)

References 40 publications

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“…Furthermore, the study reports that Africa's firms’ exploitation activities are mainly influenced by firm‐specific factors, as well as institutional factors. Similarly, Park and Xiao () employed panel data on China's manufacturing firms to examine whether and when local firms benefit from FDI. The link between FDI and local firms’ productivity was characterized by an inverted‐U‐shaped pattern.…”

Section: Literature Reviewmentioning

confidence: 99%

FDI and Welfare Dynamics in Africa

Kaulihowa

Adjasi

2017

Thunderbird Intl Bus Rev

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This article examines the welfare impact of foreign direct investment ( FDI ) in a panel of 20 African countries over the period 2000-2013. We explore the multifactor and nonmonetary measures of welfare and the nonlinear effect of FDI on welfare. We used the Driscoll and Kraay standard errors and augmented mean group ( AMG ) estimator by Eberhardt and Teal ( 2010 ) to account for cross-sectional dependency, endogeneity, and heterogeneity within panel units. The results indicate that although FDI is welfare enhancing, the nonlinear terms report mixed fi ndings. When a multifactor indicator is employed, the increase in the nonlinear term is lower than the linear part. However, there is strong evidence that FDI is ultimately welfare enhancing when a nonmonetary indicator is employed. From an international business perspective, the fi ndings have unlocked the welfare effects of international business on African host economies. International businesses through FDI can enhance welfare in Africa countries. However, the optimal efficacy of FDI -welfare impact differs across the various dimensions of welfare.

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Section: Literature Reviewmentioning

confidence: 99%

FDI and Welfare Dynamics in Africa

Kaulihowa

Adjasi

2017

Thunderbird Intl Bus Rev

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“…Perhaps one of the fundamental features of local contexts in large emerging economies is regional heterogeneity. With regard to the inward FDI toward China, the country should not be considered as a single market but as multiple sub-regional markets segmented by regional economic development and local culture (Lew and Liu 2016;Park and Xiao 2016;Zhang and Felmingham 2002). Each region in China has region-specific advantages and is managed by its own regional institutions (Lew et al 2017).…”

Section: Introductionmentioning

confidence: 99%

‘2R-Based View’ on the Internationalization of Service MNEs from Emerging Economies: Evidence from China

2019

Self Cite

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This study combines the resource-based view of the firms and region-based view of the strategy (i.e., a 2R-based view) to shed light on the crucial roles of firmspecific resources and region-specific heterogeneity within the context of China, a large emerging economy. The study explains the variations in internationalization levels among service multinational enterprises (MNEs). Based on a large sample analysis of Chinese service MNEs, our findings demonstrate that MNEs with good cost efficiency and few intangible resources exhibit great propensity for international expansion, thereby achieving high internationalization level. Chinese service MNEs located in a coastal region or a region with well-developed institutional environments achieve high internationalization level as well. These findings support a U-shaped relationship between the internationalization of service MNEs and their performance. Our research findings confirm our predictions from the 2R-based view, which provides valuable insight into the regional development and international strategy of MNEs from emerging economies.

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“…In regards to China, with a few exceptions (e.g., Cho, Jin, & Cho, ; Kwon, ; Lenartowicz & Roth, ; Ralston et al, ), the literature has ignored the importance of within‐country regional variations (Redfern & Crawford, ) despite China's vast size and subnational diversity (Koveos & Zhang, ). As previous research has shown, understanding subnational differences can be complex and elusive (e.g., Dheer et al, ; Kwon, ), and a lack of understanding of these differences might have a significant negative impact on firms conducting business in China (Park & Xiao, ; Tung, Worm, & Fang, ). Further, the literature indicates that the growth in China has been uneven across regions (Koveos & Zhang, ), with the coastal regions (e.g., East region) experiencing the greatest growth during the early phase of China's modernization, and the inland regions (e.g., West region) experiencing the least (Wang, Wan, & Yang, ).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

East vis‐à‐vis West: The evolution of work values within China regions

Ralston¹,

Wong

Egri

et al. 2017

Thunderbird Intl Bus Rev

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Numerous studies have investigated between-country cultural differences. However, the subnational cultural differences, particularly in emerging markets, have remained an underexplored research topic despite its importance. Likewise, multiperiod studies in the cross-cultural management area have also remained an underexplored topic. This study concurrently addresses both of these voids in the literature. Specifically, we examine changes in work values of businesspeople in the economically developed East region and the less developed West region of China over the first decade of the 21st century (2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010). Our findings show that, across the eight work values dimensions analyzed in this study, three exhibited static crossvergence, while the other five value dimensions exhibited conforming crossvergence. An implication of these findings is that the dissimilar work values, which had been found across the regions of China of the past century, are moving toward a more countrywide set of homogeneous values among the workforce professionals of China.

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When Do Local Firms Benefit from Inward Foreign Direct Investment? A Longitudinal Study of China's Manufacturing Sector Covering 1998–2007

Cited by 5 publications

References 40 publications

FDI and Welfare Dynamics in Africa

FDI and Welfare Dynamics in Africa

‘2R-Based View’ on the Internationalization of Service MNEs from Emerging Economies: Evidence from China

East vis‐à‐vis West: The evolution of work values within China regions

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