Ethics and taxation : a cross-national comparison of UK and Turkish firms

This paper investigates responses to tax related ethical issues facing busines

Beyond Remittances: The Role of Diaspora in Poverty Reduction in Their Countries of Origin.

This paper analyzes the impact of established Diaspora on the reduction of poverty, and identifies ways in which policy interventions, especially from donors of official development assistance, might strengthen that impact. The new policy interest in Diasporas reflects a broader concern with globalization, and specifically the very recent appreciation of the volume of remittances to developing countries by emigrant workers and their descendents. Remittances, however, are far from being the only vehicle for Diaspora influence on the incidence of poverty in their home countries

Local sourcing of multinational enterprises in China

Purpose – Local sourcing from indigenous firms by multinational enterprises (MNEs) is an important channel through which the former may benefit from the positive externalities generated by the latter. The purpose of this study is to analyze the extent and determinants of local sourcing of MNEs. Design/methodology/approach – Employing a survey dataset covering 493 multinational subsidiaries in China during 1999-2005, this paper applies the two-limit Tobit model. Findings – It is found that an MNE's local sourcing decision is influenced by its strategies, characteristics such as size and learning ability and country-of-origin. More specifically, export-orientation strategy, joint venture strategy and networking with local suppliers positively affect local sourcing. Small and autonomous subsidiaries tend to source more locally. Age has a non-linear effect. The importance of these determinants varies with regions. Research limitations/implications – Aiming at capacity building and competitiveness of indigenous firms, the Chinese government has initiated local content requirement. This study shows that such policy intervention could be counterproductive. The creation of a more competitive business environment by the government could promote more linkages. Originality/value – Given its critical role in economic development, local sourcing by MNEs has attracted much attention. Only limited research has been carried out on FDI linkage effects in China, and the location effect on FDI linkages has not been examined. This study aims to fill the gap by using Chinese survey data

Information technology and electronics firms from Taiwan Province of China in the United Kingdom: Emerging trends and implications

This article examines the modal choices, key activities and motivations of non-dominant information technology and electronics firms from Taiwan Province of China in the United Kingdom, against the backdrop of recent trends in the global economy. Its main findings include the limited prospects of the sample firms' evolution into manufacturing activity in the United Kingdom and the increasing importance of inter-firm logistics collaboration. Among the key policy implications discussed in the article are: the need for appropriate measures to support the United Kingdom's positioning as a gateway to, and a preferred base for intelligence gathering on, other European markets; the need for "high-wage" advanced economies to capitalize upon their not-easily-replicable location-specific advantages (e.g. reputable research-anddevelopment clusters; substantial domestic market) in targeting foreign direct investment in the research and development, design and sales-related areas; and the importance of a more balanced investment attraction strategy that actively targets major global players (and their capacity to attract secondary inward investment) without compromising support for indigenous growth companies. Future research should pay greater attention to the intra-regional, rather than intra-country, context of firms' evolution in international markets

Location Choice of Multinational Enterprises in China: Comparison between Japan and Taiwan

This paper explores the location choice of MNEs in China, shedding special light on the role of agglomeration of same-nationality firms. In particular, we examine how its role differs according to investors’ productivity. Furthermore, we compare the location choice of Japanese and Taiwanese MNEs in China, because Taiwanese MNEs are expected to experience less uncertainty in investing in China than Japanese MNEs, due to Taiwan’s linguistic and cultural advantages in China. We find that, less productive Japanese firms prefer to locate close to larger same-nationality agglomerations, there are no differences in location according to firms’ productivity in the case of Taiwanese firms.

Investigating the technology catching-up trajectory of Chinese Hi-Tech SMEs: an integrated framework from industry-, resource-, and institution-based view

Accepted for WLICSMB 2010Purpose This paper intends to review the literatures on the technology catching-up trajectory of latecomers in order to understand the innovation strategies of Chinese Hi-Tech SMEs (Gu & Tse, 2010; Xie & White, 2006; Chen & Qu, 2003; Lee & Lim, 2001; Kim, 1997). It also tries to construct an integrated framework to investigate their innovation strategies and the impact on organizational performance from the Industry-, Resource-, and Institution-based view (Peng, Wang, & Jiang, 2008). Design/methodology/approach The authors have reviewed papers published in the leading journals in the R&D field and proposed an integrated conceptual framework of innovation strategies of Chinese Hi-Tech firms based on Peng, Wang and Jiang (2008)’s institution-based view framework to examine the innovation strategy from Industry-, firm-specific Resource-based, and Institution-based View Originality/Value This paper pays attention to the institution factors in shaping Chinese SMEs to develop innovative capabilities. Chinese firms have comparative advantages, such as better comprehending Chinese local market, better understanding of local business environment comparing to MNEs. Our paper argues that by developing effective innovation strategies and improving innovative capabilities, Chinese SMEs will be able to survive from the severe competitions from state-owned enterprises and foreign firms in China

China's Embrace of Globalization

As China has become an increasingly important part of the global trading system over the past two decades, interest in the country and its international economic policies has increased among international economists who are not China specialists. This paper represents an attempt to provide the international economics community with a succinct summary of the major steps in the evolution of Chinese policy toward international trade and foreign direct investment and their consequences since the late 1970s. In doing so, we draw upon and update a number of more comprehensive book-length treatments of the subject. It is our hope that this paper will prove to be a useful resource for the growing numbers of international economists who are exploring China-related issues, either in the classroom or in their own research.

Firm Ownership, FOEs, and POEs

Where the theory of free competition reigns, developing countries should open their arms to investments from all types of enterprises in order to maximize jobs. Ownership, measured by votes of shareholders or boards of directors, is immaterial to performance. Matters change drastically, though, when competition depends on monopolistic assets and market theory no longer rigorously holds. Then, ownership matters. Foreign owned enterprises from developed countries can 'crowd out' privately owned enterprises from developing countries. They can break their back before they have a chance to acquire their own assets. FOEs in direct competition with POEs are not necessary for economic development to flourish, and it is dangerous for a promising POE to confront a privileged FOE in its own back yard, often with the backing of the FOE's powerful government. In this paper it is argued that because assets differ systematically between FOEs and POEs in their respective stages of evolution, FOEs may not contribute more to economic development in monopolistic industries than POEs. Indeed, the best POEs in the fastest growing emerging economies (e.g. Korea's Samsung, India's Tata, and Brazil's Embraer) tend to be more entrepreneurial than FOEs. The paper discusses the contribution of POEs vis-a-vis FOEs to economic development in emerging economies.entrepreneurship, foreign investment, firm ownership, industrialization