Government Policy and Competitive Advantages of Foreign-Financed Firms in the Guangdong Province of Southern China

Yeung, G and Mok, V (2002) Government Policy and Competitive Advantages of Foreign-Financed Firms in the Guangdong Province of Southern China. Asian Business & Management, 1 (2). pp. 227-247. ISSN 1472-4782

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Abstract

This paper investigates the impact of various Chinese government policies on the competitive advantages of foreign-financed manufacturing firms in Guangdong province of southern China. The objectives of various government sector-specific policies are to lubricate the factor markets in labour, capital and products and to facilitate the operation of foreign-financed firms. However, the actual effects are often quite different: the ambiguity, complexity and inflexibility of policies impose higher transaction costs on foreign-financed firms. These disadvantages offset some economic benefits gained under the central government's preferential foreign direct investment policy and thus damages the competitive advantages of foreign-financed firms based in Guangdong. Worse still, the lack of co-ordination among various bureaux further hampers arbitration between government bureaux and foreign investors.

Item Type: Article
Additional Information: Published by Palgrave Macmillan
Keywords: government policy; competitive advantages; foreign-financed firms; Guangdong; China
Schools and Departments: School of Global Studies > Geography
School of Law, Politics and Sociology > Sociology
Subjects: 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: 07 Mar 2017 09:17
URI: http://sro.sussex.ac.uk/id/eprint/122
Google Scholar:7 Citations

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