Publisher's Synopsis
This book is the first systematic investigation of the role of direct investment (DFI) in the development of China during the post-1978 period. It provides not only an in-depth investigation of the issues partly covered by previous studies (such as the impact of DFI on domestic capital formation, experts and economic growth), but also explores important issues ignored by previous studies. These issues are the industrial linkage effects of DFI, comparative analysis of the production characteristics of foreign-invested enterprises (FIEs) and domestic firms, DFI's impact on regional economic disparity and income inequality, entry modes of multinational corporations (MNCs) and their transfer pricing activities. As an economy undergoing transition from a socialist planning system to a market economy, China's experience development using direct foreign investment has important implications for both developing and transitional economies. These include implications for economic development strategies, the policy orientation of industrialization, policies on DFI, foreign trade and regional development, taxation and tariff policies and the openness of domestic market to foreign investment and trade.
