How Much Does Industry Structure Impact Foreign Direct Investment in China?

International Business Review, Vol. 6, No. 4, pp. 337-359, 1997

23 Pages Posted: 20 Feb 2010

See all articles by Yadong Luo

Yadong Luo

University of Miami - Department of Management

Justin Tan

York University - Schulich School of Business

Date Written: 1997

Abstract

Industry structure imperfection in a foreign market is an important factor which not only makes foreign direct investment (FDI) preferable to trade or licensing but also determines the attractiveness of one host country over others. Today, the structural transformation of transitional economies provides transnational investors with tremendous preemptive opportunities. Since the understanding of the linkage between industry structure and FDI in the context of transitional economies is incomplete, this study provides a "structural attributes" model and assesses the direction and magnitude of performance implications of industry structural factors for FDI in China. Based on a cross-sectional empirical analysis, this work observes a significant impact of structural factors on market and financial performance in international production. Managerial implications for transnational investors are highlighted.

Suggested Citation

Luo, Yadong and Tan, Justin, How Much Does Industry Structure Impact Foreign Direct Investment in China? (1997). International Business Review, Vol. 6, No. 4, pp. 337-359, 1997, Available at SSRN: https://ssrn.com/abstract=1554669 or http://dx.doi.org/10.2139/ssrn.1554669

Yadong Luo (Contact Author)

University of Miami - Department of Management ( email )

United States

Justin Tan

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

HOME PAGE: http://www.schulich.yorku.ca/SSB-Extra/Faculty.nsf/faculty/Tan%20Justin

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