Why did China Benefit from a Joint Venture Policy？A Case Study of Shanghai

Mandatory joint venture requirements have played an important role in many developing countries' foreign investment policies. However,such policies have been criticized in some of the economic literatures on the grounds that they deter investment and lead to the development of inefficient industries. A significant amount of foreign direct investment in Shanghai has been in the form of joint ventures. Yet,by many measures,Shanghai has benefited enormously. This article argues that there are three reasons to explain Shanghai's successful use of the joint venture for its industrial development. First,local firms and industries have had the capability and willingness to learn from joint ventures and other foreign invested firms. Second,the joint venture policy has been more likely than not to have "crowded in" local investment rather than crowd it out. Third,investment authorities in Shanghai have had sufficient bureaucratic capacity and political insulation to prevent the joint venture policy from being manipulated by rent seekers.     

Analysis of China＇s Overheated Economy and Macroeconomic Policy Options

Based on macroeconomic analysis since 2003, this article holds mat a trena towaras overheating has surfaced in China‘s economy. China‘s rapid economic expansion has affected the quality of its growth, with rising material and energy consumption and imbalanced economic structure as the main manifestations. Regarding macroeconomic policy options in 2004, decision-makers should shift the policy focus from control of deflation to prevention of inflation; the pace of economic growth should be properly set; a balance between consumption and investment should be strengthened by controlling excessive expansion of investment, and industrial restructuring should be conducted in a coordinated manner on the basis of properly controlling the overly rapid indastrial growth; policies should be continued to boost exports and sustainable growth of foreign investment; and more efforts should be made to accelerate the change in the mode of economic growth.     

Vehicle Industry Competitiveness in Central and Eastern Europe

By writing of this study we had an objective to set up a model which is able to explain the location decisions in the Central and Eastern European region. As an initial presumption we have connected the local capital flow to the regional competitiveness and have analysed the location factors behind the decision-makings. After uncovering the theoretical background we set up a six factors model which consists of the industrial traditions, business environment, labour market, taxation, infrastructure, and local supplier network. As a final conclusion we have tried to set up ranking with the 10 analysed countries. As a research question we wanted to prove that the competitiveness gaps are existing and are even wider in the last 10 years in the Central and Eastern Europe （CEE） region. The research based on a global vehicle industry research implemented by the Szechenyi Istvan University Hungary and participated by economists and engineers as well between 2011 and 2013. The research group with economist has been dealing with different competitiveness, location and innovation issues which are occurring in the automotive industry. Besides, the engineering group tried to solve different logistics and supply chain management problems. This article shares the results about competitiveness and location factor questions.     

Rural development through industrial clustering： A case study from China

In recent years, as cluster theory evolves and more countries and regions implement industrial stimulation policies rooted in cluster theory, empirical research on industry clusters has likewise gained momentum. With the spread of clusters and regions instituting cluster policies, cluster formation has come to be seen as a promising tool for regional development. However, compared with industrial clusters in general, rural development clusters exhibit a higher level of diversity, namely in the purposes behind their formation, the parties that participate in or operate them, and the conditions in which they are formed. In terms of China, there is a considerable degree of diversity in clusters related to agriculture and rural communities depending on the particular sub-sector, the leaders of the sector, the socioeconomic conditions of the particular region, and other factors. For this reason, rather than the clusters themselves, in this research, we focused on cluster initiatives （CI）, i.e. the efforts to facilitate regional cluster growth and competitiveness. Firstly, we conducted a brief survey of previous studies of clusters. Secondly, we analyzed the effects of industrial clustering on rural economy in China econometrically. Thirdly, we examined the cases of vegetable cluster in Shanghai and the naturally colored cotton and hops cluster in the Xinjiang Uyghur Autonomous Region. By concluding the above-mentioned analysis, we finally explored the potential and outstanding issues for rural development using cluster initiatives models.     

China＇s Regional Disparity and Its Policy Responses

The fruits of China＇s rapid economic development over the 3 decades have not been distributed fairly across different regions. Using data from a sample of 815 Chinese listed firrns during 1998-2004, our error-correction investment model showes evidence of different financial constraints on firms＇ investment in different regions. We argue that China＇s regional development policies have contributed greatly to the regional inequalities. To control the rising inequality, China has shifted its focus from the coast to the interior regions. However, it is becoming increasingly difficult for the government to direct the economy, as market mechanisms now have afar greater influence on the economy than the government does. The people-centered approach of the current leadership has meant that substantial attention has been placed on regional development disparities in an attempt to build a ＂harmonious society. ＂ China needs further extensive reforms if all the measures for reducing regional disparity are to be effective.     

Clusters Pulled by FDI in China and the Development of the SMEs： Theory and Typical Cases Study

In China, clusters are divided into two categories according to their initial power. One category is the spontaneous and endogenous industrial cluster represented by clusters of a range of small and medium-sized private enterprises such as those in Zhejiang. The other represents those attracted by the foreign direct investment （FDI） such as those in Guangdong and Jiangsu. This paper focuses on the second type. It is an attempt to analyze the role of FDI in the development of industry clusters. It also tries to explain how existing clusters attract new FDI. The factors that constrain the promotion and development of SME clusters are also examined in this research. The countermeasures of promoting the healthy development of clusters and SMEs further are put forward.     

The Tactics Adjustment of China for Utilizing the Foreign Capitals after Entering WTO

Since the reform and open the door policy were adopted in 1979, foreign direct investment has played an important role in Chinese economic development. The MNC （multi-national company） has set up branches and companies in different fields in China, brought advanced technology and management, and improved Chinese economic structure and level. In this paper, we first analyze the current situation and investment environment of China utilizing the foreign capitals, especially after China entering WTO; then bring some advices on how to adjust the tactics of utilizing foreign capitals in order to improve the efficiency of economic development.     

Trading Land Development Rights under a Planned Land Use System： The ＂Zhejiang Model＂

China＇ s state planned land use system, including regulations such as setting planned quotas for land use, basic cropland preservation, and pursuing a balance between the conversion of arable land into non-agricultural use and the supplement of new agricultural land, has substantially constrained the economic growth of industrial provinces in China. This article explores the innovative reforms adopted by Zhejiang Province through land development rights （LDR） transfer within a locality and LDR trading across localities. We argue that there is a ＂Zhejiang model of LDR transferring and trading,＂ which, we believe, has significant implications not only for fostering an efficiency-enhancing market for land development rights and agricultural land preservation, but also for optimal use of land and a more balanced regional development. One important policy issue relating to China＇s rural land system is that under China＇ s land requisition system, farmers are usually under compensated for urban land-taking.     

Foreign Manufacturing Investment in China： The Role of Industrial Agglomeration and Industrial Linkages

This paper investigates the forces that determine the industrial distribution of foreign manufacturing investment. It highlights the importance of industrial agglomeration and industrial linkage in attracting foreign investment to manufacturing industries. Using panel data for two-digit manufacturing industries in Beijing during the period of 1999-2004, this study finds that geographically agglomerated industries with strong intra-industrial linkages are indeed attractive to foreign investment. Previous foreign investment has led to the current industrial concentration or foreign investment. Investors also favor capital-intensive and technology-intensive industries, and they tend to be attracted to the most profitable and exporting industries, but avoid industries with high real labor costs and high entry barriers. Competitive local industries that possess comparative advantages are critical for attracting foreign investment. The existence of industrial clusters certainly enhances a city＇s attractiveness to foreign investment.     

An interpretive approach to explain SMEs performance through an entrepreneurial perspective

The paper aims to give a contribution to explaining the performance of SMEs through an interpretation based on an entrepreneurial perspective. To this purpose, a qualitative interpretation of the results of an empirical exploration that analyzes some subjective characteristics of a homogeneous sample of entrepreneurs is provided. Specifically, three different profiles of entrepreneurs were identified. Analyzing the characters of each profile and comparing them with the typical features of the firms considered, it emerges that the system of policy measures to promote a more effective entrepreneurship could be improved by offering new differentiated entrepreneurship policies according to the different profiles.     

Economic impact studies of Beijing 2008 Olympic Games

The paper provides an ex-ante analysis of the financial burden and potential economic benefit of the Beijing 2008 Olympic Games. Owing to the lack of uniform financial data, cost and benefits analysis is not possible, so we have adopted a multi-criteria analysis （MCA） as a part of an Olympic Games impact study, to asses the possible economic impact of hosting the Olympics in Beijing. There are many aspects of a country that may change as a result of hosting the Olympic Games. Studies on the impact of previous Olympic Games have indicated that inward investment has been attracted by preparations for the Olympics which has increased the host cities global profile and by the legacy of additional facilities afterward. Beijing is already an establish city and prime destination for inward investment in China and Asia. Hosting the Olympics in 2008 might be expected to give rise to tangible positive effects on the over all level of economic activities.     

Growing Economic Interdependence of China and the Gulf Cooperation Council

The six nations of the Gulf Cooperation Council （GCC） have approximately 40percent of total proven oil reserves as well as 23 percent of the world＇s gas reserves. Although rising oil revenues have led to greater outward investment flows, there is also a growing need for significant expansion of the domestic energy sector＇s capacity. Meanwhile, China＇s sustained economic boom has resulted in China emerging as the world＇s second largest consumer and importer o foil, with close to 40percent of its import demand presently sourced from the GCC. This share will grow significantly in the future. Commercial relations between the GCC and China have to date been dominated by energy-related bilateral investment flows and China＇s oil imports. Although this will continue to be a central feature, trade and investment links in non-energy areas will further broaden and deepen the relationship. China ＇s relationship with the USA in terms of energy is also emerging as a major issue. Rather than being competitors, a mutual dependence on stable and secure supplies from the GCC highlights the need for a cooperative relationship.     

Business Cycle in China since the Lehman Crisis： Interaction among Macroeconomic Policy,Economic Growth and Inflation

The major objectives of China＇s macroeconomic policy are to stabilize economic growth and inflation, which, in turn, are important factors determining key prices, such as the policy interest rate, the renminbi exchange rate and stockprices. In a framework that distinguishes different phases of the business cycle based on whether the current period＇s economic growth rate and inflation rate are above or below their ＂＇normal＂ values, this paper analyzes the interaction among macroeconomic policy, economic growth and inflation in China since the Lehman crisis, and the implications for these key prices. The path of China＇s economy indicates that stimulus measures taken by the government during the recession phase and tightening measures implemented during the overheating phase have helped minimize the fluctuation over the business cycle. Our analysis shows that Chinese authorities tend to rely more on adjusting the exchange rate than the interest rate to stabilize the economy. Comparing with conditions at the time of the post-Lehman recession, the current slowpace of economie growth in China may reflect not only weakening demand, but also a lowerpotential growth rate associated with the arrival of the Lewis turning point.     

Rising Inequality in China and the Move to a Balanced Economy

China faces serious external(i.e.trade) and internal(i.e.structural) imbalances.Both are related to income inequality,reduction of which will help to increase domestic demand.This paper discusses how income inequality has evolved over time.This is followed by an exploration of the consequences of high inequality.Driving forces underlying the rising inequality are analyzed before providing concrete policy recommendations.It is found that inequality declined in the early period of reform,until the mid to late 1980s,and then began a rising trend up to 2010.Major determinants of inequality include:location,institutional and policy factors,trade and globalization,and education inequality and human capital gaps along rural-urban and spatial divisions.To achieve a balanced economy and a harmonious society,development policies in China must shift from emphasizing growth to prioritizing equality.In addition,government interventions can target rural-urban disparity through rapid urbanization,and tackle regional inequality by developing financial markets, ensuring progressive allocation of fiscal resources,promoting trade and foreign direct investment in inland China,creating more formal jobs and supporting the service sector.     

China＇s Energy Strategy in the Twenty-first Century

I. Introduction As the biggest developing country, China’s energy consumption has increased substantially. China is now the second largest energy consumer in the world and its primary energy consumption accounts for 13.6 percent of the world total. In the global energy market, China seems to have an endless appetite for oil and gas. China depends on imports for more than 40 percent of its oil. According to an estimation by British Petroleum (BP, 2005), from 2000–2004, China’s oil consum…     

The Measure for the Management Innovation Performance of Industrial Enterprise of Sichuan Province

Both science and technology are the primary productive forces, and management is the second productivity. An industrial enterprise is an aorta of a country or a regional economic growth, while the level of its management innovation is directly influencing the economic growth rate of the country or the area. The management innovation performance of industrial enterprises mainly embodies the impetus to the country or the regional economic growth of management innovation. To measure the contribution proportion of management innovation to the industrial economic growth of Sichuan, the econometric model was set up by introducing management innovation as exogenous variable to Sichuan industrial economic growth model, and utilizing the relevant data of industrial economic growth of Sichuan, based on Solow＇s residual value method to calculate scientific and technological progress. The results, to some extent, can be used to offer some suggestions to manager＇s decision, and promote the sustainable, stable and well development of the industrial economy of Sichuan.     

Analyzing of Investment Strategies of Local Companies in Azerbaijan： Problems and Solutions

For businesses to be viable nowadays they must be able to invest successfully. Globalization insists that businesses track new innovations and remain open to the idea of change. In addition, businesses need to stay informed of new technological trends, retain the shareholders they already have, and be ready to invest in innovative technologies when they are introduced. Through these strategies, businesses can be competitive in the marketplace. Short- and long-term planning is necessary to identify the direction of both investments and new projects and project ideas. Two major obstacles to implementing these pre-planned strategies are insufficient in-house resources and lack of access to loans. Companies need to be realistic about what they are capable of and make sure that all new ventures tie into the existing capabilities instead of risking starting a product or service unrelated to the existing business. Projects that are undertaken must be thoroughly researched as alternative options in case the need arises to change direction. Companies should be prepared with a plan and be prepared to move to a secondary plan if the first plan meets with obstacles. In this way, companies can be well informed, prepared, and still versatile enough to meet the needs of the globalized competitive market. A proposed article describes details of the theoretical part of the business investment strategy. The themes of the research are mainly about identification of economical perspectives of the investment, type of investment, identification of investment strategy overview, and its components as well as forming of investment strategy stages. Afterwards, in proposed investigation taken place analyzing of investment risks that might be faced by companies focusing on business investment and their investment capacity based on exist strategy. Research methodology included survey, interview, and critical literature. At the end of research work, it provided expected results of the development of the investment strategy of local companies situated in Azerbaijan.     

Rejuvenation and Modernization of the Northeast China TraditionalIndustrial Base

I. IntroductionIn the process of industrialization and industrial modernization, there is the emerging problemof decline of the old industrial base and development of the new. This is due to theunsynchronized regional upgrading of industrial structure. After some leading industriesdevelop and accumulate on a large scale, they sooner or later are replaced by new industries,and wane. The reformation and rejuvenation of old industrial bases has thus become theproblem inevitably facing many count…     

Factors Influencing FDI Location Choice in China＇s Inland Areas

Since 1978, the bulk of foreign direct investment （FDI） has gone to the south-eastern coastal areas in China, with only a small portion received inland. With the launch of the Western Development Strategy in 2000 and the Central China Rising Strategy in 2004, the choice of investment locations has expanded to inland areas. Based on panel data covering 98 inland cities from 1999 to 2005, this study identifies location preference variables for FDI invested in China＇s inland areas, and finds that well-established factors such as natural resources and low labor costs are not important factors in determining FDI locations within China＇s inland. Instead, policy incentives and industrial agglomeration are the most important factors. The findings of the present study have policy implications for both host country authorities and multinational corporations.     

Analysis of China＇s Foreign Trade Growth and Discussion of Related Policies

China’s foreign trade experienced three consecutive years of super-speed growth in 2002-2004, even though the country was stricken by the SARS epidemic in 2003 and power shortages in 2004. What has gone beyond expectations is that the exports trade still grew with momentum after the central government lowered the export rebate rates by an average of 3 percentage points, starting from January 2004. Such growth momentum is apparently associated with external demand and the performance of the domestic macroeconomy, and even more associated with a series of support policies. This paper tries to raise issues issues associated with these policies on the basis of an analysis of foreign trade performance in 2002-2004, in order to enhance understanding of the advantages and disadvantages of these policies, and to recommend a new line of thought for improving policy arrangements for the growth of import and export trade and for the harmonious development of the macroeconomy.