Foreign Direct Investment and Investment Environment in Dongguan Municipality of Southern China
- 1 February 2001
- journal article
- research article
- Published by Informa UK Limited in Journal of Contemporary China
- Vol. 10 (26), 125-154
- https://doi.org/10.1080/10670560125259
Abstract
Based on 26 case studies, this paper investigates the socio-economic causes of the inflow of FDI and its policy implications in Dongguan. The favourable factors for foreign investors in Dongguan can be categorised under the Dunning's OLI (ownership, locational and internalisation advantages) framework. This paper argues that factors other than policy incentive, such as sub-contractual and pseudo integration, are playing more important roles in attracting the inflow of FDI and maintaining the high level of economic growth in Dongguan. This finding questions the effectiveness of policy incentives, such as tax-breaks, implemented by the Government as a means to attract FDI in Dongguan. The existence of 'Chinese crony capitalism' calls for further improvement in the implementation of laws and regulations in Dongguan and the reduction of bureaucratic red-tape by the central and local governments.Keywords
This publication has 4 references indexed in Scilit:
- Foreign Investment and Socio-Economic DevelopmentPublished by Springer Science and Business Media LLC ,2001
- The Competitive Advantage of NationsPublished by Springer Science and Business Media LLC ,1998
- Autonomy and growth in China: County experience in Guangdong ProvinceJournal of Contemporary China, 1996
- Foreign Direct InvestmentPublished by University of Chicago Press ,1993