IDEAS home Printed from https://ideas.repec.org/a/taf/recgxx/v81y2005i3p261-281.html
   My bibliography  Save this article

Personal Networks, Institutional Involvement, and Foreign Direct Investment Flows into China’s Interior

Author

Listed:
  • Ying Qiu

Abstract

This article explores the relationship between informal and formal institutions and how their interactions shape the outcome of locational choices for foreign direct investment (FDI) in China’s interior. This is an important but neglected aspect of China’s economic development. The focus is on why FDI exists in host locations where the investment environment is poor and less competitive. Evidence from Shaanxi province suggests that the intertwined role played by personal networks and institutional involvement is a crucial part of the explanation. Networks are the key: at the individual/personal level, they are in the form of personal networks, and at the institutional/organization level, they take the form of institutional involvement. Moreover, the relationships among FDI, personal networks, and institutional involvement have a hierarchical structure: the larger the foreign parent firms, the more institutional involvement, while the smaller the foreign parent firms, the more personal networks are involved.

Suggested Citation

  • Ying Qiu, 2005. "Personal Networks, Institutional Involvement, and Foreign Direct Investment Flows into China’s Interior," Economic Geography, Taylor & Francis Journals, vol. 81(3), pages 261-281, July.
    • Handle: RePEc:taf:recgxx:v:81:y:2005:i:3:p:261-281
    DOI: 10.1111/j.1944-8287.2005.tb00270.x
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/j.1944-8287.2005.tb00270.x
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1111/j.1944-8287.2005.tb00270.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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mark Lorenzen & Ram Mudambi & Andreas Schotter, 0. "International connectedness and local disconnectedness: MNE strategy, city-regions and disruption," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-24.
    2. Bas Karreman & Martijn J. Burger & Frank G. van Oort, 2017. "Location Choices of Chinese Multinationals in Europe: The Role of Overseas Communities," Economic Geography, Taylor & Francis Journals, vol. 93(2), pages 131-161, March.
    3. McDonald, Conor & Buckley, Peter J. & Voss, Hinrich & Cross, Adam R. & Chen, Liang, 2018. "Place, space, and foreign direct investment into peripheral cities," International Business Review, Elsevier, vol. 27(4), pages 803-813.
    4. Canfei He & Yan Yan & David Rigby, 2015. "Regional Industrial Evolution in China: Path Dependence or Path Creation?," Papers in Evolutionary Economic Geography (PEEG) 1520, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2015.
    5. Lin, Jingyi & Plechero, Monica, 2019. "Global innovation networks for Chinese high tech small and medium enterprises: the supportive role of highly skilled migrants and returnees," Papers in Innovation Studies 2019/5, Lund University, CIRCLE - Centre for Innovation Research.
    6. Saras Sarasvathy & K. Kumar & Jeffrey G. York & Suresh Bhagavatula, 2014. "An Effectual Approach to International Entrepreneurship: Overlaps, Challenges, and Provocative Possibilities," Entrepreneurship Theory and Practice, , vol. 38(1), pages 71-93, January.
    7. Mark Lorenzen & Ram Mudambi & Andreas Schotter, 2020. "International connectedness and local disconnectedness: MNE strategy, city-regions and disruption," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(8), pages 1199-1222, October.
    8. Wenying Fu & Javier Revilla Diez & Daniel Schiller, 2017. "Determinants of Networking Practices in the Chinese Transition Context: Empirical Insights from the Pearl River Delta," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 108(2), pages 205-219, April.
    9. Chenjian Zhang, 2022. "Formal and informal institutional legacies and inward foreign direct investment into firms: Evidence from China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1228-1256, August.

    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:taf:recgxx:v:81:y:2005:i:3:p:261-281. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/recg .

    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.