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The Impact of business-government relationship on location choice by Korean firms in China : A comparative case study

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  • The Impact of business-government relationship on location choice by Korean firms in China
  • Wang, Yue; Suh, Chung-Sok
  • Journal of International Business and Economy


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Title The Impact of business-government relationship on location choice by Korean firms in China
Similar Titles
Sub Title

A comparative case study

Material Type Articles
Author(English)

Wang, Yue; Suh, Chung-Sok

Publisher

[Seoul]:Journal of International Business and Economy

Date 2006
Journal Title; Vol./Issue Journal of International Business and Economy:vol. 7(no. 1)
Pages 20
Subject Country China(Asia and Pacific)
South Korea(Asia and Pacific)
Language English
File Type Link
Original Format pdf
Subject Industry and Technology < Entrepreneurship
Government and Law < Public Administration
Holding JIBE

Abstract

Since China embarked on market-oriented reform in 1979, various kinds of economic zones have been set up to attract foreign direct investment (FDI). These economic zones often compete against each other for investment, offering better policies and creating more incentives. In most local economic zones, red tape is significantly reduced because of the establishment of local zone authorities with consolidated power to oversee FDI-related matters. Foreign invested enterprises (FIEs) need to deal with much less number of government agencies in these zones than outside these zones. But on the other hand, relationship with these zone authorities becomes crucial for FIEs targeting or operating in these zones. Prior research shows FIEs in China often make their location choices based on the preferential policies offered by different regions. But a neglected factor is that how the businessgovernment relationship might affect foreign firms’ location choice between these zones within the same locality. (The rest omitted)