nep-cna New Economics Papers
on China
Issue of 2008‒04‒12
five papers chosen by
Zheng Fang
Ohio State University

  1. The Innovativeness of Foreign Firms in China By Urem, Branka; Alcorta, Ludovico; An, Tongliang
  2. Impact of the Debt Ratio on Firm Investment: A case study of listed companies in China By YUAN Yuan; MOTOHASHI Kazuyuki
  3. Key Issues in Expansion of End-User Mobile Communication in China By Sangwan, S.; Chong, G.; Pau, L-F.
  4. The Rise of China: Prospects of Regional Trade Policy By Filip Abraham; Jan Van Hove
  5. The making of national giants: technology and governments shaping the international expansion of oil companies from Brazil and China By Pereira de Carvalho, Flavia; Goldstein, Andrea

  1. By: Urem, Branka (UNU-MERIT); Alcorta, Ludovico (Maastricht School of Management); An, Tongliang (School of Business, Nanjing University)
    Abstract: This paper studies the relationship between foreign ownership and innovations of high novelty in context of advanced developing countries. We develop hypotheses about a direct relationship in terms of two dimensions, propensity and intensity of innovations of high novelty, and a contingency hypothesis about the moderating impact of R&D internationalisation on the relationship with propensity. The analysis is based on innovation survey data on manufacturing firms from Jiangsu province of China. Hypotheses are tested using non-parametric methods. We find that foreign firms do not have a higher propensity of innovations of high novelty, not even when they engage in formal R&D. However, the evidence suggests that foreign firms have a higher intensity of innovations of high novelty than domestic firms.
    Keywords: multinational enterprises, foreign firms, innovation, manufacturing, China
    JEL: F23 L60 O31 O32
    Date: 2008
  2. By: YUAN Yuan; MOTOHASHI Kazuyuki
    Abstract: In this paper, we analyze whether the total debt ratios and bank loan ratios of Chinese listed companies had any impact on their fixed investment in 2001-2006, and whether this impact, if it existed, differed among companies with differing investment opportunities. Our results are as follows. First, our analysis reveals that the total debt ratio (bank loan ratio) did have a negative impact on fixed investment among Chinese listed companies. Secondly, the total debt ratio (bank loan ratio) had a stronger negative impact on low-growth companies than on high-growth companies, implying that the total debt ratio (bank loan ratio) actually restrained companies from overinvestment. Finally, the analysis led to the interesting result that the bank loan ratio had a stronger impact on fixed investment than the total debt ratio, and actually had the strong effect of restraining investment particularly by low-growth companies, implying that in China, banks supervise the investment activities of companies more strongly than other creditors.
    Date: 2008–04
  3. By: Sangwan, S.; Chong, G.; Pau, L-F. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: China’s mobile communications market presents unique market challenges. With a high subscriber growth rate but polarized and stratified consumer adoption trends, an investigation into the current status of this market will improve our understanding on how adoption of mobile communications is evolving. In this descriptive paper we analyze key issues relating to market characteristics of mobile communications with an objective to better comprehend the dynamics of this largest mobile subscribers market. Using secondary data we identify mobile industry and end-user related trends to infer our conclusions for the industry.
    Keywords: mobile communication;mobile subscribers market;China
    Date: 2008–03–19
  4. By: Filip Abraham; Jan Van Hove
    Abstract: China now engages in multilateral trade liberalization as a new member of the WTO. Concurrently, the number of regional trade agreements is increasing worldwide. China and its trading partners would benefit from increased regional liberalization. Using a gravity equation for 23 Asia-Pacific countries between 1992 and 2000, we show that ASEAN and APEC currently have small effects on Asia-Pacific exports, which are mainly influenced by growth, trade barriers and common language. However, we find that China’s participation in regional agreements has large export potentials, not only with respect to ASEAN, but also in a broad agreement including South- and East-Asian countries.
    Date: 2008–03
  5. By: Pereira de Carvalho, Flavia (UNU-MERIT); Goldstein, Andrea (OECD Development Centre)
    Abstract: This chapter analyses foreign direct investments (henceforth FDI) in the oil industry from two large emerging economies, Brazil and China, with the purpose to understand the role of Governments and technology in the internationalisation strategies of those firms. The chapter shows that the Brazilian oil company, Petrobras, internationalised in the 1970s in order to secure oil resources, and throughout time developed technological capabilities that explain its current success and worldwide expansion. Chinese firms have risen later and are making their outward moves in order to catch up technologically with the world's leading firms.
    Keywords: multinational corporations, emerging economies, oil companies, technology, technological exploitation, competitive advantages.
    JEL: F23 O25 O38 O57
    Date: 2008

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