East Asian Economic Review

  • 제26권3호
  • /
  • Pages.205-225
  • /
  • 2022
  • /
  • 2508-1640(pISSN)
  • /
  • 2508-1667(eISSN)
대외경제정책연구원 (Korea Institute for International Economic Policy)
권호 표지
DOI QR코드

DOI QR Code

The Impact of Government Assistance to State-owned Enterprises on Foreign Start-ups: Evidence from Yangtze River Delta

  • 투고 : 2022.07.11
  • 심사 : 2022.09.16
  • 발행 : 2022.09.30
PDF 다운로드
⟨ 이전 논문 다음 논문 ⟩

초록

Different types of corporate ownership may affect the environment among firms and could influence the decisions of new entities in the region. This study determines the role of state-owned enterprises (SOEs) in hindering new foreign manufacturing firms in the Yangtze River delta (YRD). The negative binomial regression is used for city-sector level data and the following points summarize the results: Firstly, the unique privileges that SOEs enjoy alongside governmental support create difficulties for foreign firms trying to establish themselves near existing SOEs. Secondly, although core cities are more attractive to foreign firms than peripheral cities, the role of core-periphery reveals that, in spite of all the regional advantages core cities could offer, whenever the share of SOEs is higher, the core-periphery system will have an adverse impact on new foreign firms. In other words, government preference for SOEs can suppress the attraction of foreign start-ups. However, after 2008, the governmental authorities finally succeeded in implementing their promising policy of fair treatment and competition in only the core cities.

키워드

참고문헌

  1. Alcacer, J. 2004. "Location choices across the value chain: How activity and capability influence agglomeration and competition effects." Academy of Management Proceedings, vol. 2004, no. 1. https://doi.org/10.5465/ambpp.2004.13863283
  2. Ali, S. and W. Guo. 2005. "Determinants of FDI in China." Journal of Global Business and Technology, vol. 1, no. 2, pp. 21-33.
  3. Artz, G. M., Kim, Y. and P. F. Orazem. 2016. "Does agglomeration matter everywhere?: New firm location decisions in rural and urban markets." Journal of Regional Science, vol. 56, no. 1, pp. 72-95. https://doi.org/10.1111/jors.12202
  4. Bai, C.-E., Du, Y., Tao, Z. and S. Y. Tong. 2004. "Local protectionism and regional specialization: evidence from China's industries." Journal of International Economics, vol. 63, no. 2, pp. 397-417. https://doi.org/10.1016/S0022-1996(03)00070-9
  5. Barry, F., Gorg, H. and E. Strobl. 2003. "Foreign direct investment, agglomerations, and demonstration effects: An empirical investigation." Review of World Economics, vol. 139, no. 4, pp. 583-600. https://doi.org/10.1007/BF02653105
  6. Belkhodja, O., Mohiuddin, M. and E. Karuranga. 2017. "The determinants of FDI location choice in China: A discrete-choice analysis." Applied Economics, vol. 49, no. 13, pp. 1241-1254. https://doi.org/10.1080/00036846.2016.1153786
  7. Branstetter, L. G. and R. C. Feenstra. 2002. "Trade and foreign direct investment in China: A political economy approach." Journal of International Economics, vol. 58, no. 2, pp. 335-358. https://doi.org/10.1016/S0022-1996(01)00172-6
  8. Cantwell, J. and R. Mudambi. 2005. "MNE competence-creating subsidiary mandates." Strategic Management Journal, vol. 26, no. 12, pp. 1109-1128. https://doi.org/10.1002/smj.497
  9. Dewenter, K. L. and P. H. Malatesta. 2001. "State-owned and privately owned firms: An empirical analysis of profitability, leverage, and labor intensity." American Economic Review, vol. 91, no. 1, pp. 320-334. https://www.jstor.org/stable/2677913 https://doi.org/10.1257/aer.91.1.320
  10. Du, J., Lu, Y. and Z. Tao. 2008. "Economic institutions and FDI location choice: Evidence from US multinationals in China." Journal of comparative Economics, vol. 36, no. 3, pp. 412-429. https://doi.org/10.1016/j.jce.2008.04.004
  11. Firth, M., Fung, P. and O. M. Rui. 2006. "Corporate performance and CEO compensation in China." Journal of Corporate Finance, vol. 12, no. 4, pp. 693-714. https://doi.org/10.1016/j.jcorpfin.2005.03.002
  12. Fu, S. and J. Hong. 2011. "Testing urbanization economies in manufacturing industries: Urban diversity or urban size?" Journal of Regional Science, vol. 51, no. 3, pp. 585-603. https://doi.org/10.1111/j.1467-9787.2010.00702.x
  13. Gabe, T. 2003. "Local industry agglomeration and new business activity." Growth and Change, vol. 34, no. 1, pp. 17-39. https://doi.org/10.1111/1468-2257.00197
  14. Gabe, T. 2009. "Chapter 6: Impact of Agglomerations on the Economy." In Goetz, S. J., Deller, S. and T. Harris. (eds.) Targeting Regional Economic Development. London: Routledge. pp. 106-122.
  15. Geng, X., Yang, X. and A. Janus. 2009. "State-owned enterprises in China: Reform dynamics and impacts." In Garnaut, R., Song, L. and W. T. Woo. (eds.) China's new place in a world in crisis: Economic, Geopolitical and Environmental Dimensions. Canberra: ANU E Press. pp. 155-178.
  16. Guo, Q., He, C. and D. Li. 2016. "Entrepreneurship in China: The role of localisation and urbanisation economies." Urban Studies, vol. 53, no. 12, pp. 2584-2606. https://doi.org/10.1177/0042098015595598
  17. Harrison, A., Meyer, M., Wang, P., Zhao, L. and M. Zhao. 2019. "Can a tiger change its stripes? Reform of Chinese state-owned enterprises in the Penumbra of the state." NBER Working Papers, no. 25475. National Bureau of Economic Research.
  18. He, C. 2002. "Information costs, agglomeration economies and the location of foreign direct investment in China." Regional studies, vol. 36, no. 9, pp. 1029-1036. https://doi.org/10.1080/0034340022000022530
  19. He, C. 2006. "Regional decentralisation and location of foreign direct investment in China." Post- Communist Economies, vol. 18, no. 1, pp. 33-50. https://doi.org/10.1080/14631370500505131
  20. He, C. and J. Wang. 2012. "Does ownership matter for industrial agglomeration in China?" Asian Geographer, vol. 29, no. 1, pp. 1-19. https://doi.org/10.1080/10225706.2012.662312
  21. Huang, H. and Y. D. Wei. 2016. "Spatial inequality of foreign direct investment in China: Institutional change, agglomeration economies, and market access." Applied Geography, vol. 69, pp. 99-111. https://doi.org/10.1016/j.apgeog.2014.12.014
  22. Jean, R.-J. B., Tan, D. and R. R. Sinkovics. 2011. "Ethnic ties, location choice, and firm performance in foreign direct investment: A study of Taiwanese business groups FDI in China." International Business Review, vol. 20, no. 6, pp. 627-635. https://doi.org/10.1016/j.ibusrev.2011.02.012
  23. Krugman, P. 1991. "Increasing returns and economic geography." Journal of Political Economy, vol. 99, no. 3, pp. 483-499. https://doi.org/10.1086/261763
  24. Lin, J. Y., Cai, F. and Z. Li. 1998. "Competition, policy burdens, and state-owned enterprise reform." American Economic Review, vol. 88, no. 2, pp. 422-427. http://www.jstor.org/stable/116960
  25. Lin, J. Y. and G. Tan. 1999. "Policy burdens, accountability, and the soft budget constraint." American Economic Review, vol. 89, no. 2, pp. 426-431. https://doi.org/10.1257/aer.89.2.426
  26. Lin, K. J., Lu, X., Zhang, J. and Y. Zheng. 2020. "State-owned enterprises in China: A review of 40 years of research and practice." China Journal of Accounting Research, vol. 13, no. 1, pp. 31-55. https://doi.org/10.1016/j.cjar.2019.12.001
  27. Luo, L., Brennan, L., Liu, C. and Y. Luo. 2008. "Factors influencing FDI location choice in China's inland areas." China & World Economy, vol. 16, no. 2, pp. 93-108. https://doi.org/10.1111/j.1749-124X.2008.00109.x
  28. Luo, Y., Xue, Q. and B. Han. 2010. "How emerging market governments promote outward FDI: Experience from China." Journal of World Business, vol. 45, no. 1, pp. 68-79. https://doi.org/10.1016/j.jwb.2009.04.003
  29. McDonald, C., Buckley, P. J., Voss, H., Cross, A. R. and L. Chen. 2018. "Place, space, and foreign direct investment into peripheral cities." International Business Review, vol. 27, no. 4, pp. 803-813. https://doi.org/10.1016/j.ibusrev.2018.01.004
  30. Mudambi, R. 1998. "The role of duration in multinational investment strategies." Journal of International Business Studies, vol. 29, no. 2, pp. 239-261. https://doi.org/10.1057/palgrave.jibs.8490035
  31. Myles Shaver, J. and F. Flyer. 2000. "Agglomeration economies, firm heterogeneity, and foreign direct investment in the United States." Strategic Management Journal, vol. 21, no. 12, pp. 1175-1193. https://doi.org/10.1002/1097-0266(200012)21:12<1175::AID-SMJ139>3.0.CO;2-Q
  32. Nolan, P. and W. Xiaoqiang. 1999. "Beyond privatization: Institutional innovation and growth in China's large state-owned enterprises." World Development, vol. 27, no. 1, pp. 169-200. https://doi.org/10.1016/S0305-750X(98)00132-6
  33. Qi, H. and D. M. Kotz. 2020. "The impact of state-owned enterprises on China's economic growth." Review of Radical Political Economics, vol. 52, no. 1, pp. 96-114. https://doi.org/10.1177/0486613419857249
  34. Ramasamy, B., Yeung, M. and S. Laforet. 2012. "China's outward foreign direct investment: Location choice and firm ownership." Journal of world business, vol. 47, no. 1, pp. 17-25. https://doi.org/10.1016/j.jwb.2010.10.016
  35. Rosenthal, S. S. and W. C. Strange. 2003. "Geography, industrial organization, and agglomeration." Review of Economics and Statistics, vol. 85, no. 2, pp. 377-393. https://doi.org/10.1162/003465303765299882
  36. Sarbu, M.-R. and I. M. Gavrea. 2014. "Forms and Motivations of Foreign Direct Investment." SEA: Practical Application of Science, vol. 2, no. 1 (issue 3), pp. 532-540.
  37. Schonberg, A. 2021. "Government Procurement and Sales to State Owned Enterprises in China." US-China Business Council.
  38. Shi, J., Sadowski, B., Li, S. and O. Nomaler. 2020. "Joint effects of ownership and competition on the relationship between innovation and productivity: Application of the CDM model to the Chinese manufacturing sector." Management and Organization Review, vol. 16, no. 4, pp. 769-789. https://doi.org/10.1017/mor.2020.13
  39. Shi, W., Sun, S. L., Pinkham, B. C. and M. W. Peng. 2014. "Domestic alliance network to attract foreign partners: Evidence from international joint ventures in China." Journal of International Business Studies, vol. 45, no. 3, pp. 338-362. https://doi.org/10.1057/jibs.2013.71
  40. Sun, Q., Tong, W. and Q. Yu. 2002. "Determinants of foreign direct investment across China." Journal of International Money and Finance, vol. 21, no. 1, pp. 79-113. https://doi.org/10.1016/S0261-5606(01)00032-8
  41. Vakhitov, V. and C. Bollinger. 2010. "Effects of ownership on agglomeration economies: Evidence from Ukrainian firm level data." Discussion Paper Series, no. 24. Kyiv School of Economics and Kyiv Economics Institute.
  42. Wu, J., Wei, Y. D., Li, Q. and F. Yuan. 2018. "Economic transition and changing location of manufacturing industry in China: A study of the Yangtze River Delta." Sustainability, vol. 10, no. 8. https://doi.org/10.3390/su10082624
  43. Yu, H. 2014. "The Ascendency of State-owned Enterprises in China: Development, controversy and problems." Journal of Contemporary China, vol. 23, no. 85, pp. 161-182. https://doi.org/10.1080/10670564.2013.809990