Ownership characteristics as determinants of FDI location decisions in emerging economies

Building on agency theory and international business research, this paper explores how parent firm and subsidiary ownership factors affect FDI location decisions in emerging economies. Our analysis suggests that ownerships of block-shareholders in the parent firm (i.e., controlling family, non-family TMT members and institutional investors) and equity stake in a subsidiary owned by the parent company are positively associated with FDI location decisions in less-explored and risky areas. However, the effects of parent firm and subsidiary ownership factors may substitute for each other with respect to their integrated effect on dealing with risks associated with FDI location decisions

Statistical yearbook of China.

Comp. by the State statistical burea

Productivity in Chinese Provincial Agriculture

Technical change, technical efficiency, and multifactor productivity indices are reported for a multiple-output, multiple-input production technology using Chinese provincial data for the 1979-95 period. Results show significant variation in productivity change from year-to-year and province-to-province. Using panel methods, we regress the three production indices on several factors important in explaining productivity changes. Decollectivization in the early 1980s accounts for a significant expansion of the frontier, while rural industrialization decreased agricultural productivity. Productivity is also sensitive to relative grain prices, to natural disasters such as flood and drought, and proximity of the provinces to coastal areas. 1. Chinese Agriculture under Economic Reform Almost two decades have passed since economic reform began to transform the Chinese countryside. Under Chairman Mao Zedong, collectivization, political upheaval, low state purchase prices and the state? s monopoly on trade all led to stagnant growth in agriculture. Initial land reforms following the establishment of the People? s Republic in 1949 that redistributed land to poorer peasants while maintaining private property rights proved initially promising. However, productivity stagnated from 1957 (the year before the widespread creation of large rural communes) through the next tw