Spillover-effects, crowding-in and the contributions of FDI to growth in China: A review of the literature

The paper presents a review of theoretical concepts and empirical findings on the issue of FDI-induced spillover and crowding-effects in the Chinese economy. Against the background of the peculiar characteristics of China's FDI-inflows the paper discusses various research agendas and results. It finds mostly inconclusive evidence, which is understood to result from an insufficient analytical differentiation of FDI and host economy actors. On the 'supply'-side of FDI it seems to be necessary to include the parameter of 'cultural affinity' in the analysis and differentiate between Overseas Chinese and non-Chinese investors (with the latter probably featuring a greater potential for positive externalities). On the 'demand'-side it seems to be adequate to differentiate between the state and collective / private domestic sector and analyze their respective incentives to actively explore potential spillover effects and actually appropriate new technologies introduced by foreign investors. It seems as if the harder the budget constraints and the more competitive the environment, the greater the realized spillover effects. It becomes obvious that most existing studies are working with data that does not reflect the dynamic developments of the recent ten years. --Foreign direct investment,spillover-effects,crowding-in,Chinese economy

通貨のパワーと帝国下の日中・日タイ経済関係

早大学位記番号:新8290早稲田大

The investment behaviour of Taiwanese in mainland China

This thesis studies the patterns of Taiwanese investment behaviour in China. It also analyzes the implications on current economic, cultural and political trends and appraises the determinants influencing the Taiwanese direct investment (TDI) in China. As an active force in the economic development of the world, China is attractive to enterprises and producers from all over the world. Despite the complicated political environments between China and Taiwan, the Taiwanese have been investing in China for years. The increasing TDI in China is because of Taiwan's own depressed economic, political and social conditions, as well as FDI incentives offered by the Chinese government. Ethnical and language issues, as well as guanxi, also play important roles in this whole business process. Besides the above motives, this study also points out that an important motive for TDI in China is that Taiwanese industries are based on a 'subcontracting system', a unique international production/distribution network in East Asia, seen especially in Chinese regions. The motives of FDI from Taiwan into China are very different from the motives of FDI based on oligopolistic enterprises. TDI in China tends to involve an entire Taiwanese 'industrial migration', instead of the movement of firms due to the Taiwanese subcontracting system. This thesis aims to contribute to the study of FDI on Taiwanese firms which have mainland based ventures. This thesis attempts to provide an overall picture of T D I in China by exploring the investment motives, industries, and locations over a set time span. This thesis examines the determinants of locational choices o n T D I in China based on a conditional ๒git model. Similar to Hou and Zhang's study (2001), my empirical results Find that there is strong evidence of structural change on the determinants of locational choices of T D I in China over time, especially for infrastructure and labour costs. The factors behind this structural change include China's WTO entry and cultural links supported by the FDI policy. The results also show that the technology transfer from TDI into China has been significant for my sample perio

How do the Chinese and Japanese manage their joint ventures?: a comparative perspective

Studies of international joint ventures (IJVs) in China continue to accumulate. Many were originally informed from various historical, economic, political, sociological, and geographical perspectives. More recently, international management theory and research has made some progress. Attention may likewise switch from the initial founding of I.lVs towards their subsequent operation and management and eventual maturation. In addition, it will become more possible to compare different international approaches and perspectives upon such. For that reason, this study seeks to explore and explain why conflicting interests arise in Japanese Affiliated Enterprises (JAEs) in China and how Chinese and Japanese perspectives differ. It therefore applies a theoretical model of IJV founding and development derived from the works of Harrigan, Parkhe and others to a sample of eighty-one JAEs and four short case studies. It concentrates upon the variables of founding motives, partner selection, control and conflict, performance, and investment environment and places their development into an overall context. A range of historical, economic, political, cultural, and personality factors are identified in the process and future developmental/research possibilities specified

Soft power in international relations : Japan's state, sub-state and non-state relations with China.

The term `soft power', coined by Joseph Nye in his 1990 Foreign Policy article of the same title, has been cited by academics, politicians and the mass media with varying degrees of confusion and hype. To some the term has meant the influence of Hollywood film culture around the world; to others, it refers to the economic power exerted by Western countries. In most cases, soft power has been associated with nation states and their national interests. However, for many people, the term is a vague concept with no real meaning. In order to develop a more precise view of soft power, this thesis begins with an examination of how power has been conceived of in international relations, by reviewing the main historical schools of thought in the field, i. e. the Realist, Liberalist, Critical and Constructivist schools. It then goes on to propose a theory of soft power based upon Constructivist ideas. To test the application of this conceptualisation of soft power, this study addresses the case of Japan's post-war relations with China, utilising analyses of three agents of Japan's soft power. Firstly, at the state level, the activities of the Japan Foundation in China are investigated. Secondly, at the sub-state level, Kobe City's sister city relationship with Tianjin City, and its relations with other cities in China, are considered. Finally, at the non-governmental level, the activities of the Japan-China Friendship Association are examined. Through an analysis of soft power at the state, sub-state and non-state levels, this thesis aims to provide a deeper understanding of soft power, and Japan's international relations as an example of its application

\u3ci\u3eFaits Accomplis\u3c/i\u3e in the Shadow of Shifting Power

The military fait accompli is so understudied a phenomenon in the international relations literature that even its definition is not widely known. A fait accompli is a unilateral revision to the status quo in an ongoing dispute over some distribution of benefits. Though recent work has demonstrated that faits accomplis are relatively common events in international history and current international relations, the subject remains undertheorized and empirically underexplored. This dissertation seeks to open up the conversation about faits accomplis in two complementary ways. First, it advances an original formal model of faits accomplis in the shadow of power shifts, interacting the effects of dynamic power on a rising state’s decision to use faits accomplis to revise the status quo in an ongoing territorial dispute. Second, it tests the predictions of the theoretical model against the evidence amassed in two cases of territorial disputes, China’s maritime territorial disputes with its Southeast Asian neighbors in the South China Sea, and those with Japan in the East China Sea. The dissertation aims contribute to the international relations literature at three levels of generality: China’s security strategies, the security dynamics of East and Southeast Asia, and the growing body of work on faits accomplis in security studies. I offer and apply a coherent structural explanation of China’s behavior in the South China Sea while also providing insight into when and where we might expect faits accomplis in other contexts, and under what conditions such faits accomplis may give rise to war

External incentives, industrial development and regional economic integration

The revival of regional integration in the European Community (EC) in the early 1980s has brought about profound implications for the development of regional integration and its related theory. Firstly, European industry searching to promote its competitiveness highlighted the need for a "European-level" solution to European economic decline and contributions to the relaunching of European integration. Secondly, as a result of the renewed momentum for regional integration, external factors which were neglected by previous efforts in theory-exploration, have become more noticeable in the process of regional integration.The purpose of this thesis about external factors is to analyse to what extent the progress of regional integration is driven by the private sector. The relaunching of European integration which brought about the successful  passage of the Single European Act has demonstrated the crucial contribution of the business community to  accelerating  the progress of integration.This thesis further offers an analysis of the proposition that the impact of external factors on industrial development is the key to understanding the process of creating the Chinese Economic Area (CEA). It explores the argument  that instead of being motivated by political factors, the process of regional integration is primarily stimulated by  industrial development in the private sector. It concludes by suggesting a new focus for the study of regional  integration - the "external incentives-industrial development" approach, and comparative insights into the EC and  the CEA

China: New Engine of World Growth

Twenty-five years of reform have transformed China from a centrally planned and closed system to a predominantly market-driven and open economy. As a consequence, China is emerging as the new powerhouse for the world economy. China: new engine for world growth discusses the impact and significance of this transformation. It points out risks to the growth process and unfinished tasks of reform. It presents conclusions from recent research on growth, trade and investment, the financial sector, income and regional disparities, industrial location and private sector development. Ross Garnaut is a Professor of Economics in the Research School of Pacific and Asian Studies, and Chairman of the China Economy and Business Program at The Australian National University. He was Australia’s Ambassador to China in the 1980s. Ligang Song is a Fellow in the Asia Pacific School of Economics and Government, and Director of the China Economy and Business Program at The Australian National University

Sino-South Korean relations, 1971-1990 : in the context of economic and international politics.

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International scientific and technical cooperation between China and Ukraine

The purpose of the bachelor's thesis is to study China and Ukraine's cooperation experience in the high-tech field and understand the future cooperation trends and directions that can be optimized. The object of research is the process of international development cooperation between Ukraine and China. The subject of research is the structure, dynamics, and prospects of development international cooperation between Ukraine and China. Results of work: approaches to the activation of scientific and technical activities have been determined cooperation in the context of globalization; a proposal for the construction of a joint Ukrainian-Chinese enterprise within the outlined approaches was formulated; recommendations for the development of a general strategy are substantiated development of scientific and technical relations between Ukraine and China.Метою бакалаврської роботи є вивчення досвіду співпраці Китаю та України у сфері високих технологій та розуміння майбутніх трендів та напрямків співпраці, які можна оптимізувати. Об’єктом дослідження є процес розвитку міжнародного співробітництва між Україною та Китаєм. Предметом дослідження є структура, динаміка та перспективи розвитку міжнародного співробітництва між Україною та Китаєм. Результати роботи: визначено підходи до активізації науково-технічної діяльності кооперації в умовах глобалізації; сформульовано пропозицію щодо будівництва спільного українсько-китайського підприємства в рамках окреслених підходів; обґрунтовано рекомендації щодо розробки загальної стратегії розвитку науково-технічних відносин між Україною та КНР