TY - JOUR
T1 - Determinants of the Performance of Foreign Invested Enterprises in China
AU - CHENG, Leonard K.
AU - WU, Changqi
PY - 2001/6/1
Y1 - 2001/6/1
N2 - In this paper, we attempt to uncover the key determinants of the performance of foreign invested enterprises (FIEs) in China. The results reveal that cash contributed by foreign parent companies had a significantly positive impact on current profitability, but not on subjective performance. There was some evidence that foreign management improved subjective performance. The duration of operation was a consistently positive factor in the success of the FIEs in both profitability and subjective performance. FIEs that sold more output to the domestic market performed better, and so did FIEs in industries consistent with China's comparative advantages. Unexpectedly, FIEs owned by Hong Kong investors did not perform any better than FIEs owned by other foreign investors and FIEs located in Special Economic Zones (SEZs) performed worse than those located outside of SEZs. J. Comp. Econ., June 2001, 29(1), pp. 347-365. Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong. Copyright 2001 Academic Press. Journal of Economic Literature Classification Numbers: F23.
AB - In this paper, we attempt to uncover the key determinants of the performance of foreign invested enterprises (FIEs) in China. The results reveal that cash contributed by foreign parent companies had a significantly positive impact on current profitability, but not on subjective performance. There was some evidence that foreign management improved subjective performance. The duration of operation was a consistently positive factor in the success of the FIEs in both profitability and subjective performance. FIEs that sold more output to the domestic market performed better, and so did FIEs in industries consistent with China's comparative advantages. Unexpectedly, FIEs owned by Hong Kong investors did not perform any better than FIEs owned by other foreign investors and FIEs located in Special Economic Zones (SEZs) performed worse than those located outside of SEZs. J. Comp. Econ., June 2001, 29(1), pp. 347-365. Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong. Copyright 2001 Academic Press. Journal of Economic Literature Classification Numbers: F23.
UR - http://www.scopus.com/inward/record.url?scp=0039191656&partnerID=8YFLogxK
U2 - 10.1006/jcec.2001.1715
DO - 10.1006/jcec.2001.1715
M3 - Journal Article (refereed)
AN - SCOPUS:0039191656
VL - 29
SP - 347
EP - 365
JO - Journal of Comparative Economics
JF - Journal of Comparative Economics
SN - 0147-5967
IS - 2
ER -