In this paper, we use a unique dataset covering joint ventures in two provinces of China, Jiangsu and Zhejiang, to test the effect of the institutional environment for domestic private firms on ownership structures of FDI projects. Unlike many studies on this subject, we approach the issue from...

China is one of the most popular investment destinations in the world. This paper argues that FDI inflows into China are in fact driven by some fundamental inefficiencies in the Chinese economy. Specifically, one of the inefficiencies has to do with a high level of fragmentation of both goods...

Inflation control is deeply political because it has distributional implications. This paper studies the characteristics of the Chinese political system and their impact on controlling inflation demand--the state-sectoral investment component of the aggregate demand. The paper first shows (1)...

Foreign-invested enterprises (FIEs) are now an important component of the Chinese economy. Since 1992, the growth of FIEs has been exponential. However our understanding of the institutional factors driving the FIE growth remains limited. This paper uses data from 39 industries in China for a...

For twelve years now, China has attempted to develop and to consolidate its automotive industry through an industrial policy approach closely modeled on that of Korean government in the 1970s. While the growth of the automotive industry has been impressive, government's consolidation attempt has...