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Estimating the Impact of Chinese Foreign Direct Investment on Telecommunications Penetration Rates

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  • Jiang, Peter

Abstract

This research examines the effects of Chinese Foreign Direct Investment (CFDI) on fixed broadband and mobile cellular penetration rates using panel data from the "China Global Investment Tracker," a dataset of publicly available CFDI transactions from 2005 to 2023. As CFDI grows to pre-COVID-19 levels, its impact on penetration rates may be influenced by the Chinese government's preferential treatment for its state-owned enterprises (SOE) and telecommunications companies. Policy makers interested in FDI liberalization would benefit from understanding the distinct consequences of FDI from different sources. Through panel data analysis, this paper estimates that CFDI has a positive relationship with fixed broadband subscriptions and a negative relationship with mobile cellular subscriptions. This paper also explores potential explanations for these trends and their policy implications.

Suggested Citation

  • Jiang, Peter, 2024. "Estimating the Impact of Chinese Foreign Direct Investment on Telecommunications Penetration Rates," 24th ITS Biennial Conference, Seoul 2024. New bottles for new wine: digital transformation demands new policies and strategies 302525, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itsb24:302525
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    File URL: https://www.econstor.eu/bitstream/10419/302525/1/ITS-Seoul-2024-paper-125.pdf
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    References listed on IDEAS

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    1. Lestage, Romain & Flacher, David & Kim, Yeonbae & Kim, Jihwan & Kim, Yunhee, 2013. "Competition and investment in telecommunications: Does competition have the same impact on investment by private and state-owned firms?," Information Economics and Policy, Elsevier, vol. 25(1), pages 41-50.
    2. Dr. Dinesh Mahajan, 2014. "Telecommunication Sector and Foreign Direct Investment: An Indian Perspective," Journal of Commerce and Trade, Society for Advanced Management Studies, vol. 9(2), pages 77-87, October.
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