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WTO accession, impediments to FDI, and the market opening of basic telecom services in China

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  • Han, Shengfei
  • Wang, Wei

Abstract

This paper analyzes why no foreign direct investment (FDI) has entered basic telecom services in China despite relaxed government policies after the World Trade Organization (WTO) accession in 2001. A new indicator of barriers to FDI incorporating the policy and non-policy impediments has been developed with multiple sources of data including a first-hand survey and interview. Analytic hierarchy process has been applied to reduce arbitrariness in assigning weight to each impeding factor. Results indicate that there is no significant reduction in the actual level of openness to FDI in the sector over the past decade of post-WTO period, which is largely attributable to the recessive non-policy factors. Policy implications are discussed.

Suggested Citation

  • Han, Shengfei & Wang, Wei, 2014. "WTO accession, impediments to FDI, and the market opening of basic telecom services in China," China Economic Review, Elsevier, vol. 29(C), pages 68-81.
    • Handle: RePEc:eee:chieco:v:29:y:2014:i:c:p:68-81
    DOI: 10.1016/j.chieco.2014.02.007
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    Cited by:

    1. Hongzhong Fan & Shah Muhammad Kamran & Mingliang Li & Qiliang Zhou, 2017. "Congestion costs and differences in the regional distribution of FDI in China," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(4), pages 1789-1809, July.
    2. Yao, Yao & Chen, George S. & Zhang, Lin, 2021. "Local financial intermediation and foreign direct investment: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 198-216.
    3. Xia, Jun, 2017. "China’s telecommunications evolution, institutions, and policy issues on the eve of 5G: A two-decade retrospect and prospect," Telecommunications Policy, Elsevier, vol. 41(10), pages 931-947.

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    More about this item

    Keywords

    Basic telecom services; Impediments to FDI; China; Market opening;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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