Foreign direct investment and investment environment in Dongguan Municipality of southern China

Yeung, Godfrey (2001) Foreign direct investment and investment environment in Dongguan Municipality of southern China. Journal of Contemporary China, 10 (26). pp. 125-154. ISSN 1067-0564

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Abstract

Based on 26 case studies, this paper investigates the socio-economic causes of the inflow of FDI and its policy implications in Dongguan. The favourable factors for foreign investors in Dongguan can be categorised under the Dunning's OLI (ownership, locational and internalisation advantages) framework. This paper argues that factors other than policy incentive, such as sub-contractual and pseudo integration, are playing more important roles in attracting the inflow of FDI and maintaining the high level of economic growth in Dongguan. This finding questions the effectiveness of policy incentives, such as tax-breaks, implemented by the Government as a means to attract FDI in Dongguan. The existence of 'Chinese crony capitalism' calls for further improvement in the implementation of laws and regulations in Dongguan and the reduction of bureaucratic red-tape by the central and local governments.

Item Type: Article
Schools and Departments: School of Global Studies > Geography
School of Law, Politics and Sociology > Sociology
Subjects: G Geography. Anthropology. Recreation > G Geography (General)
H Social Sciences > HD Industries. Land use. Labour > HD0028 Management. Industrial Management
H Social Sciences > H Social Sciences (General)
Depositing User: Godfrey Yeung
Date Deposited: 19 Sep 2006
Last Modified: 06 Mar 2017 14:36
URI: http://sro.sussex.ac.uk/id/eprint/120
Google Scholar:22 Citations

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