Does Ethnicity Pay? Evidence from Overseas Chinese FDI in China
Most of the economic analyses of the overseas Chinese network focus on trade and investment flows at the country level. In this paper, we analyze the effects of the ethnic Chinese network at the firm level. Contrary to the conventional wisdom, we find that ethnic Chinese FDI firms in China in fact u...
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| Other Authors: | |
| Format: | Article |
| Language: | en_US |
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MIT Press
2013
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| Online Access: | http://hdl.handle.net/1721.1/81345 https://orcid.org/0000-0003-0183-6312 |
| _version_ | 1811084491671732224 |
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| author | Huang, Yasheng Jin, Li Qian, Yi |
| author2 | Sloan School of Management |
| author_facet | Sloan School of Management Huang, Yasheng Jin, Li Qian, Yi |
| author_sort | Huang, Yasheng |
| collection | MIT |
| description | Most of the economic analyses of the overseas Chinese network focus on trade and investment flows at the country level. In this paper, we analyze the effects of the ethnic Chinese network at the firm level. Contrary to the conventional wisdom, we find that ethnic Chinese FDI firms in China in fact underperform nonethnic Chinese FDI firms. We also find that the performance of ethnic Chinese firms deteriorates over time. We present evidence consistent with the hypothesis that ethnic Chinese firms underinvest in those firm attributes that may contribute to long-term performance, such as human capital and technology. Our findings raise both empirical and normative implications of ethnic ties. |
| first_indexed | 2024-09-23T12:51:38Z |
| format | Article |
| id | mit-1721.1/81345 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T12:51:38Z |
| publishDate | 2013 |
| publisher | MIT Press |
| record_format | dspace |
| spelling | mit-1721.1/813452022-09-28T10:30:33Z Does Ethnicity Pay? Evidence from Overseas Chinese FDI in China Huang, Yasheng Jin, Li Qian, Yi Sloan School of Management Huang, Yasheng Most of the economic analyses of the overseas Chinese network focus on trade and investment flows at the country level. In this paper, we analyze the effects of the ethnic Chinese network at the firm level. Contrary to the conventional wisdom, we find that ethnic Chinese FDI firms in China in fact underperform nonethnic Chinese FDI firms. We also find that the performance of ethnic Chinese firms deteriorates over time. We present evidence consistent with the hypothesis that ethnic Chinese firms underinvest in those firm attributes that may contribute to long-term performance, such as human capital and technology. Our findings raise both empirical and normative implications of ethnic ties. Harvard Business School. Division of Research 2013-10-07T16:07:34Z 2013-10-07T16:07:34Z 2013-07 2012-02 Article http://purl.org/eprint/type/JournalArticle 0034-6535 1530-9142 http://hdl.handle.net/1721.1/81345 Huang, Yasheng, Li Jin, and Yi Qian. “Does Ethnicity Pay? Evidence from Overseas Chinese FDI in China.” Review of Economics and Statistics 95, no. 3 (July 2013): 868-883. © 2013 The MIT Press https://orcid.org/0000-0003-0183-6312 en_US http://dx.doi.org/10.1162/REST_a_00281 Review of Economics and Statistics Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. application/pdf MIT Press MIT Press |
| spellingShingle | Huang, Yasheng Jin, Li Qian, Yi Does Ethnicity Pay? Evidence from Overseas Chinese FDI in China |
| title | Does Ethnicity Pay? Evidence from Overseas Chinese FDI in China |
| title_full | Does Ethnicity Pay? Evidence from Overseas Chinese FDI in China |
| title_fullStr | Does Ethnicity Pay? Evidence from Overseas Chinese FDI in China |
| title_full_unstemmed | Does Ethnicity Pay? Evidence from Overseas Chinese FDI in China |
| title_short | Does Ethnicity Pay? Evidence from Overseas Chinese FDI in China |
| title_sort | does ethnicity pay evidence from overseas chinese fdi in china |
| url | http://hdl.handle.net/1721.1/81345 https://orcid.org/0000-0003-0183-6312 |
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