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The Changing Trends and Patterns of Foreign Direct Investment in China

The Changing Trends and Patterns of Foreign Direct Investment in China


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About the Book

This dissertation, "The Changing Trends and Patterns of Foreign Direct Investment in China" by Wai-sze, Agnes, Wong, 黃慧思, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: Abstract of dissertation entitled The Changing Trends and Patterns of Foreign Direct Investment in China Submitted by Wong Wai Sze, Agnes For the Master of Arts in China Development Studies at the University of Hong Kong in June 2005 China has undergone a dramatic growth since 1978, when the "Open Door Policy" promoted a new era of modernization. The transition from a planned economy towards a market system has created new opportunities for Foreign Direct Investment (FDI) that was soon recognized as a powerful engine for China's economic development. The growing importance of the Chinese economy is evidenced by the high level of international interests in the Chinese market. The economic boom and liberalization make China a new focus of investment by multinational corporations (MNCs). However, the questions of how to enter this huge market and what entry mode should be taken remain poorly understood. Therefore, this paper is a study of the entry modes of MNCs into China from a socioeconomic perspective. This thesis examines two questions, namely "how" MNCs formulate their entry mode strategy for the Chinese market and "what" factors influence their chosen entry mode. The former involves the choice between Joint Ventures which includes Contractual Joint Ventures (CJVs) and Equity Joint Ventures (EJVs), and Wholly Foreign-Owned Enterprises (WFOEs) while the later involves host country and home country factors. After evaluating different indicators of investment environment such as host country policies, country risks, etc, it is found that there exists a positive relationship between the selection of entry modes and the investment environment of the target region. The better the investment environment is, the higher the level of resource commitment entry modes the MNCs are willing to adopt. MNCs prefer WFOEs rather than EJVs in some economically advanced regions like the eastern coast of China. On the other hand, lower resource commitment entry modes are usually found in the central and western part of China. The prioritized areas only play an important role in the early 1990s and their importance is fading, but these areas still maintain their status in the inland region. Host country specific factor is one of the key determinants in affecting MNCs' foreign market entry strategies. DOI: 10.5353/th_b3164521 Subjects: Investments, Foreign - China - Hong Kong International business enterprises - China


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Product Details
  • ISBN-13: 9781361210215
  • Publisher: Open Dissertation Press
  • Publisher Imprint: Open Dissertation Press
  • Height: 279 mm
  • No of Pages: 90
  • Weight: 231 gr
  • ISBN-10: 1361210214
  • Publisher Date: 26 Jan 2017
  • Binding: Paperback
  • Language: English
  • Spine Width: 5 mm
  • Width: 216 mm

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