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Innovative Capabilities and the Globalization of Chinese Firms

Becoming Leaders in Knowledge-intensive Innovation Ecosystems

Edited by Maureen McKelvey and Jun Jin

This book explains how Chinese firms are increasingly developing innovative capabilities and engaging in globalization. It focuses on knowledge-intensive and innovative entrepreneurial firms and multinationals, which already are – or are striving to become – world-leaders in their technologies and markets, and which do so by their use of advanced knowledge for innovation as well as their ability to act globally. The book advances related debates in entrepreneurship, innovation management, economic geography and international business.
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Edited by Maureen McKelvey and Jun Jin

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Peter J. Buckley and Hinrich Voss

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Peter J. Buckley and Hinrich Voss

The rapid international expansion of Chinese businesses has evoked mixed perceptions in host countries and among policymakers. This literature review critically analyses rigorous studies on the motivation, background, strategy, and impact of Chinese outward foreign direct investment and the emergence of Chinese multinational enterprises (MNEs). It is thus informative for the next wave of academic research on Chinese and emerging market MNEs in international business, political economy, economic geography and political sciences. Written by two experts in the field, this valuable study provides an important backdrop for academics who intend to understand emerging market MNEs in order to advise policymakers.
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Peter J. Buckley and Hinrich Voss

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Peter J. Buckley and Hinrich Voss

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Social Trust and Economic Development

The Case of South Korea

O. Yul Kwon

In just one generation, South Korea has transformed from a recipient of foreign aid to a member of the G20. In this informative book, South Korea is used as a case by which to explore and illustrate specific issues arising from the complex relationships between the nation’s economic development and society.
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Conclusion and policy implications

A Critical Assessment

Chunlai Chen

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Chunlai Chen

Foreign Direct Investment and the Chinese Economy provides a comprehensive overview of the impact of foreign direct investment, with extensive empirical evidence, on the Chinese economy over the last three and a half decades.
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Chunlai Chen

Since the economic reforms implemented in late 1978, China has achieved remarkable results in increasing per capita income and improving the living standards of the Chinese people, which have been attributed to the rapid economic growth. However, with this fast economic growth, income inequality, especially urban–rural income inequality, in China has actually worsened. While FDI has contributed to China’s economic growth, has FDI also contributed to the increase of income inequality in China? Chapter 4 investigates empirically whether FDI has improved or worsened urban–rural income inequality in China. By using a provincial-level panel dataset containing China’s 30 provinces over the period 1987–2014 and employing the fixed-effects and instrumental variable regression techniques, the study finds that the effect of FDI on urban–rural income inequality is non-linear. At first, FDI increases urban–rural income inequality. And after reaching a critical level, FDI starts to reduce urban–rural income inequality through employment creation, knowledge spillovers and contribution to economic growth. Overall FDI will contribute to reducing urban–rural income inequality in China as FDI inflows continue to rise. However, the study also finds that FDI has indirectly contributed to increasing urban–rural income inequality in China through its significant role in international trade. In addition, the study finds that there exists a Kuznets inverted-U curve relationship between urban–rural income inequality and economic development, suggesting that urban–rural income inequality will gradually decline in China as China’s economy continues to grow and per capita income keeps rising.