SOURAFEL GIRMA sourafel.girma@nottingham.ac.uk
Professor of Industrial Economics
Investment liberalisation, technology take-off and export market entry: does foreign ownership structure matter?
Authors
Yundan Gong
Holger
Sandra Lancheros
Abstract
In the run up to its accession to the WTO in 2001, China has undergone far-reaching investment liberalisation. As part of this investment liberalisation process, existing restrictions on foreign ownership structure and mandatory export and technology transfer requirements imposed on foreign firms have been lifted in a number of industries. We exploit these facts to identify the causal effects of foreign acquisitions on export markets entry and technology take-off and to evaluate whether the level of foreign ownership plays a role in stimulating these changes. Using doubly robust propensity score reweighted bivariate probit regressions to control for the selection bias associated with firm level foreign acquisition incidences, we uncover strong but heterogeneous positive effects on export activity for all types of foreign ownership structure. We also find that minority foreign owned acquisition targets experience higher likelihood of R&D, providing evidence that joint ventures between foreign owners and Chinese firms can contribute positively to China’s “science and technology take-off”.
Citation
Girma, S., Gong, Y., Görg, H., & Lancheros, S. (2015). Investment liberalisation, technology take-off and export market entry: does foreign ownership structure matter?. Journal of Economic Behavior and Organization, 116, https://doi.org/10.1016/j.jebo.2015.04.008
Journal Article Type | Article |
---|---|
Acceptance Date | Apr 13, 2015 |
Online Publication Date | Apr 21, 2015 |
Publication Date | Aug 1, 2015 |
Deposit Date | Oct 11, 2017 |
Publicly Available Date | Oct 11, 2017 |
Journal | Journal of Economic Behavior & Organization |
Electronic ISSN | 0167-2681 |
Publisher | Elsevier |
Peer Reviewed | Peer Reviewed |
Volume | 116 |
DOI | https://doi.org/10.1016/j.jebo.2015.04.008 |
Public URL | https://nottingham-repository.worktribe.com/output/755630 |
Publisher URL | http://www.sciencedirect.com/science/article/pii/S0167268115001122?via%3Dihub |
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Copyright Statement
Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by-nc-nd/4.0
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