IDEAS home Printed from https://ideas.repec.org/a/bla/etrans/v14y2006i4p629-647.html
   My bibliography  Save this article

Ownership, investment climate and firm performance

Author

Listed:
  • Mary Hallward‐Driemeier
  • Scott Wallsten
  • Lixin Colin Xu

Abstract

The importance of a country's ‘investment climate’ for economic growth has recently received much attention. In this paper we use a new survey of 1,500 Chinese enterprises in five cities to measure more precisely components of the investment climate and their effects on firm performance. Our firm‐level analysis reveals that both ownership and investment climate measures matter for investment, productivity and growth. In particular, firm performance is positively correlated with foreign and domestic private ownership, light regulatory burdens, limited corruption, technological infrastructure and labour market flexibility. In contrast, gains from improving banking access and physical infrastructure are quite limited.

Suggested Citation

  • Mary Hallward‐Driemeier & Scott Wallsten & Lixin Colin Xu, 2006. "Ownership, investment climate and firm performance," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(4), pages 629-647, October.
    • Handle: RePEc:bla:etrans:v:14:y:2006:i:4:p:629-647
    DOI: 10.1111/j.1468-0351.2006.00267.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-0351.2006.00267.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1468-0351.2006.00267.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Smarzynska, Beata K. & Shang-Jin Wei, 2000. "Corruption and the composition of foreign direct investment - firm-level evidence," Policy Research Working Paper Series 2360, The World Bank.
    2. Caprio, Gerard & Honohan, Patrick, 2001. "Finance for Growth: Policy Choices in a Volatile World," MPRA Paper 9929, University Library of Munich, Germany.
    3. Suma S. Athreye, 2005. "The Indian software industry and its evolving service capability," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(3), pages 393-418, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hallward-Driemeier, Mary & Wallsten, Scott & Lixin Colin Xu, 2003. "The investment climate and the firm : firm-level evidence from China," Policy Research Working Paper Series 3003, The World Bank.
    2. Smarzynska Javorcik, Beata, 2004. "The composition of foreign direct investment and protection of intellectual property rights: Evidence from transition economies," European Economic Review, Elsevier, vol. 48(1), pages 39-62, February.
    3. Anthony Goerzen & Stephen Sapp & Andrew Delios, 2010. "Investor Response to Environmental Risk in Foreign Direct Investment," Management International Review, Springer, vol. 50(6), pages 683-708, December.
    4. Colin Kirkpatrick, 2005. "Finance and Development: Overview and Introduction," Journal of Development Studies, Taylor & Francis Journals, vol. 41(4), pages 631-635.
    5. Slavo Radosevic & Esin Yoruk, 2015. "Why do we need theory and metrics of technology upgrading?," UCL SSEES Economics and Business working paper series 134, UCL School of Slavonic and East European Studies (SSEES).
    6. Grace Kite, 2014. "Linked in? Software and Information Technology Services in India’s Economic Development," Journal of South Asian Development, , vol. 9(2), pages 99-119, August.
    7. Gerard Caprio & Patrick Honohan, 2008. "Banking Crises," Center for Development Economics 2008-09, Department of Economics, Williams College.
    8. Guorong Jiang & Nancy Tang & Eve Law, 2002. "The costs and benefits of developing debt markets: Hong Kong's experience," BIS Papers chapters, in: Bank for International Settlements (ed.), The development of bond markets in emerging economies, volume 11, pages 103-114, Bank for International Settlements.
    9. Karen Ruckman & Nilesh Saraf & Vallabh Sambamurthy, 2015. "Market Positioning by IT Service Vendors Through Imitation," Information Systems Research, INFORMS, vol. 26(1), pages 100-126, March.
    10. Dašić Miloš, 2022. "Political Risk and Quality of Governance as Determinants of Foreign Direct Investments in the Transition Countries," Economic Themes, Sciendo, vol. 60(3), pages 343-367, September.
    11. Asli Demirgüç-Kunt & Luis Servén, 2010. "Are All the Sacred Cows Dead? Implications of the Financial Crisis for Macro- and Financial Policies," The World Bank Research Observer, World Bank, vol. 25(1), pages 91-124, February.
    12. Galindo, Arturo & Schiantarelli, Fabio, 2002. "Credit Constraints in Latin America: An Overview of the Micro Evidence," IDB Publications (Working Papers) 1438, Inter-American Development Bank.
    13. repec:wip:wpaper:3 is not listed on IDEAS
    14. Micheline Riemsdijk, 2013. "Talent Acquisition in the IT Industry in Bangalore: A Multi-Level Study," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 104(4), pages 478-490, September.
    15. De la Torre, Augusto & Schmukler, Sergio, 2007. "Emerging Capital Markets and Globalization: The Latin American Experience," IDB Publications (Books), Inter-American Development Bank, number 349, December.
    16. Andrzej Cieślik & Łukasz Goczek, 2015. "Corruption and Export Performance in Post-communist Countries: Evidence from Firm-level Data," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 42.
    17. Asli Demirguc-Kunt & Edward J. Kane, 2002. "Deposit Insurance Around the Globe: Where Does It Work?," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 175-195, Spring.
    18. Mukta SAMTANI & Alexandru CAPATINA, 2012. "Achieving the next level of Growth through Competitive Intelligence Practices:An Exploratory Study of Romanian Offshore Technology Service Providers," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 15-20.
    19. Şerife Özşahin & Gülbahar Üçler, 2017. "The Consequences of Corruption on Inflation in Developing Countries: Evidence from Panel Cointegration and Causality Tests," Economies, MDPI, vol. 5(4), pages 1-15, December.
    20. Dollar, David & Hallward-Driemeier, Mary & Mengistae, Taye, 2006. "Investment climate and international integration," World Development, Elsevier, vol. 34(9), pages 1498-1516, September.
    21. Disdier, Anne-Celia & Mayer, Thierry, 2004. "How different is Eastern Europe? Structure and determinants of location choices by French firms in Eastern and Western Europe," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 280-296, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:etrans:v:14:y:2006:i:4:p:629-647. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/ebrdduk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.