Problems and profitability of direct foreign investiment in China: An analysis of the survey data
By analyzing a survey in the Tianjin area, this article investigates the problems and profitability of joint ventures in China, and draws some policy implications. The authors find that there are a number of systemic constraints on the profitability of joint ventures, such as input and foreign exchange shortages, rigid labor policies, conflicts between business partners, and uneasy relations with state authorities. The article concludes that unless the investment environment is improved, China will not succeed in the competition with other developing countries in attracting the foreign capital needed for its modernization.
KeywordsJoint Venture Foreign Capital Special Economic Zone Northeast ASIAN Study Export Promotion
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