University of Macau / Faculty of Law

What are the factors behind the recent development of industrial technology in China? Does China follow the path of learning technology from outside through direct foreign investment and international trade as other Asian newly industrialized economies, or imitate the U.S. model that develop science and technology within the country based on the strong domestic research capacity? This study examines these questions using a comprehensive research model and a new Chinese patent dataset. The patent statistics in this study are created based on more than 120 thousand granted invention patent abstracts in China between 1985 and 2003. Compared with the Chinese patent data used in prior studies, this dataset distinguishes firm patents from patents awarded to universities and research institutes. The dependent variable for regression analysis is the technological innovation performance of Chinese domestic firms as measured by the number of patents awarded to firms in 30 Chinese provinces from 1989 to 1999. The final panel data for regression analysis were completed with other provincial indicators for the same years on research and development (R and D) expenditures by firms and public institutions, foreign direct investment (FDI), domestic consumption, and foreign exports. The results of count data fixed effect regression approaches show that the efforts of firms, measured by industrial R and D expenditures, spillovers from R and D activities conducted at universities and public institutions in the same region, and demand driven mainly by foreign exports are the most prominent positive factors in the domestic firms technological innovation performance. While the net impact of FDI on domestic firms patenting activity is mostly insignificant and sometimes negative

published_or_final_version / Geography and Geology / Doctoral / Doctor of Philosophy

China's phenomenal economic growth has coincided with a substantial increase in FDI inflows and hence led researchers, including the author, to believe that increased inflows of FDI into China has had important implications for the country's trade and economic development over the past decades. The objective of this thesis is to identify and investigate several key issues associated with inward FDI in the Chinese economy. These include the determinants of FDI inflows at the sectoral level, spillover effects of FDI on labour productivity and innovation, the causal linkage between FDI and China's bilateral trade with selected OECD countries, and the performance of foreign funded enterprises (FFEs) compared to the performance of state-owned enterprises (SOEs) in China. This thesis adds to the existing research on the role that FDI has played in recent growth of the Chinese economy by applying new as well as established techniques to China's regional and sectoral data. In particular, it integrates descriptive and empirical analysis to extend existing studies in several ways. First, analyses in the empirical chapters of this thesis are undertaken using data at the regional and sectoral level. Second, this thesis uses panel data from official sources for all empirical examinations. Last, whereas most existing studies have ignored the importance of unit-root issues when using panel data, and therefore possibly producing unreliable results, this thesis employs unit-root tests for all panel data analyses. The key findings in this thesis can be summarized in four points. First, at the sectoral level, for China as a whole, foreign investors are influenced by labour productivity, wage costs and innovation activities but not by the level of state ownership. For Guangdong province, foreign investors are concerned with labour productivity and wages as well as state ownership at sectoral level. However, the level of innovation does not play an important role in influencing inflows of FDI into Guangdong province at sectoral level. Second, the thesis found that FDI generates spillover effects on labour productivity in China although no spillover effects on the level of innovation were detected. At the regional level, it was concluded that the coastal and western regions experience a greater amount of spillover effects from FDI than do the municipal cities. Furthermore, the western region is the only region that experiences greater spillover effects from FDI on innovation than the municipal cities. Also, the spillover effects of FDI appear to be no different prior to or post-1997 when the Asian financial crises occurred. Third, a co-integrating relationship exists between FDI and total trade, FDI and exports, and FDI and imports in China. The thesis further concluded that bidirectional causality between FDI and trade variables exists in China in the long-run. However, short-run causality runs only from FDI to trade. Fourth, the thesis further shows that FFEs in China are more efficient than SOEs. Over time it is observed that SOEs and FFEs in the municipal cities and the coastal regions experienced greater productivity gains than those in the central and western regions during the sample period. It is also concluded that both SOEs and FFEs in the municipal cities have experienced more productivity growth than those in other regions with SOEs in the central region and FFEs in the western region experiencing the least productivity growth.

by Chan Sui-wing, Francis. / Bibliography: leaves 61-62 / Thesis (M.B.A.)--Chinese University of Hong Kong, 1985

by Tam Yuen-chiu, Stephen. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1994. / Includes bibliographical references (leaves 50-52). / ACKNOWLEDGEMENTS --- p.i / ABSTRACT --- p.ii / TABLE OF CONTENTS --- p.iv / LIST OF TABLES --- p.vi / CHAPTER / Chapter I. --- INTRODUCTION --- p.1 / Objectives --- p.2 / Chapter II. --- METHODOLOGY --- p.3 / Secondary Research --- p.3 / Primary Research --- p.4 / Definition --- p.6 / Limitations --- p.8 / Chapter III. --- THE FAST FOOD INDUSTRY IN HONG KONG --- p.9 / Fast Food Industry Background --- p.9 / Hong Kong Fast Food Chains With China Operations --- p.13 / Hong Kong Fast Food Chains Without China Operations --- p.17 / Chapter IV. --- FOREIGN FAST FOOD CHAINS IN CHINA --- p.18 / An Overview of the Retail Market Environment in China --- p.18 / Historical Development and Present Situation of Foreign Fast Food Chains --- p.20 / Chapter V. --- SUMMARY OF IN-DEPTH INTERVIEWS --- p.26 / Importance of China Business --- p.26 / Entry Motives --- p.29 / Forms of Entry --- p.30 / Problems Encountered --- p.32 / Attitude Toward Political Risks of the Tiananmen Incident --- p.36 / Competitive Advantage of Foreign Fast Food Chains in China --- p.38 / Business Results to Date Measured Against Expectations --- p.39 / Major Improvements Expected by Foreign Fast Food Chains --- p.40 / Chapter VI. --- CONCLUSIONS --- p.42 / APPENDICES --- p.43 / BIBLIOGRAPHY --- p.50

by Yam Kam Shing. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1995. / Includes bibliographical references (leaves 43-45). / ABSTRACT --- p.ii / TABLE OF CONTENTS --- p.iii / Chapter I. --- INTRODUCTION --- p.1 / Chapter II. --- LITERATURE REVIEW --- p.2 / Chapter III. --- EQUITY FINANCING --- p.4 / Listing Equity Shares In Hong Kong --- p.4 / Listing Equity Shares In Overseas Market --- p.10 / Venture Capital / Investment Funds --- p.15 / Private Placement --- p.21 / Chapter IV. --- DEBT FINANCING --- p.22 / Issuing Debt Securities --- p.22 / Project Finance --- p.29 / Borrowing from Local Banks --- p.32 / Borrowing from PRC Banks --- p.32 / Chapter V. --- OTHER METHODS --- p.33 / World Bank and its affiliates --- p.33 / Export Credit --- p.35 / Suppliers' Financing --- p.37 / Customer Financing --- p.38 / Franchising --- p.38 / Leasing --- p.38 / Counter-Trade --- p.39 / Staff Financing --- p.41 / Chapter VI. --- SUMMARY --- p.42 / BIBLIOGRAPHY --- p.43 / APPENDICES --- p.46 / Abbreviations / SEHK the Stock Exchange of Hong Kong Ltd / HKMA Hong Kong Monetary Authority / PBOC the People's Bank of China (the central bank of China) / MOFTEC the Ministry of Foreign Trade & Economic Cooperation of China / "Listing Rules ""Rules Governing the Listing of Securities"", SEHK"

by Lau Chi Wai, Michael, Or Chun Choy, Angus. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1993. / Includes bibliographical references (leaves 68-69). / ABSTRACT --- p.ii / TABLE OF CONTENTS --- p.iii / LIST OF TABLES --- p.v / LIST OF FIGURES --- p.vi / ACKNOWLEDGMENTS --- p.vii / CHAPTER / Chapter I --- INTRODUCTION --- p.1 / Background of The Move of The Production Base to Southern China --- p.1 / Main Reason for Moving The Production Base to China --- p.3 / Summary --- p.4 / Chapter II --- METHODOLOGY --- p.6 / Research Objectives --- p.6 / Scope of Study --- p.6 / Sources of Information --- p.7 / Approach --- p.8 / Limitation of Study --- p.8 / Chapter III --- STRUCTURE OF INVESTMENT --- p.10 / Forms of Investment Available to Hong Kong Manufacturers --- p.10 / Forms of Investment Adopted by Hong Kong Manufacturers --- p.14 / Problems Encountered by Hong Kong manufacturers --- p.15 / Summary --- p.22 / Chapter IV --- MANAGEMENT --- p.23 / Chinese Culture and Western Management --- p.23 / Main Management Problems --- p.24 / Summary --- p.42 / Chapter V --- SURVEY OF MANAGEMENT STYLE --- p.44 / Background --- p.44 / Objectives --- p.44 / Research Method --- p.45 / Research Result --- p.49 / Overall Discussion --- p.65 / APPENDIX --- p.67 / BIBLIOGRAPHY --- p.68

by Choi Cheong-Wo. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1998. / Includes bibliographical references (leaves 103-106). / ABSTRACT --- p.4 / TABLE OF CONTENTS --- p.5 / LIST OF TABLES & CHARTS --- p.7 / Chapter CHAPTER 1 --- INTRODUCTION --- p.9 / Research Objectives --- p.9 / Importance of Research --- p.9 / Organization --- p.10 / Chapter CHAPTER 2 --- SEMICONDUCTOR INDUSTRY IN CHINA --- p.12 / History and Milestone --- p.12 / Current State of Affairs --- p.16 / Projection towards Year 2000 --- p.21 / The goals for the 9th FIVE Year Plan --- p.21 / The Changing Tactics --- p.23 / Other General Policies --- p.24 / Chapter CHAPTER 3 --- GENERAL ANALYSIS --- p.27 / Advance of Technology in Semiconductor in China --- p.27 / Capability vs Capacity --- p.35 / How does the development of the IC industry fair with the state of development of its economy? --- p.36 / SWOT analysis on the current Semiconductor Industry in China --- p.38 / Chapter CHAPTER 4 --- FOREIGN DIRECT- INVESTMENT IN CHINA AND TECHNOLOGY TRANSFER --- p.42 / Economy Evolution in China and Foreign Direct Investment --- p.42 / Form of Foreign Direct Investment in China --- p.47 / Some practical concerns on licensing arrangement and technology transfer --- p.48 / Foreign Direct Investment in the semiconductor industry in China --- p.49 / Business realities of Technology Transfer --- p.52 / Problem with FDI in China --- p.56 / The arts of mating State Plan with Company Objectives --- p.57 / Behavior of Transnational Company: A Literature Review --- p.59 / Technology Transfer by FDI in China: A Literature Review --- p.65 / Technology Transfer by FDI: Lessons to China --- p.67 / Chapter CHAPTER 5 --- EXPERIENCES IN SOUTH EAST ASIA --- p.70 / Overview --- p.71 / Korea --- p.73 / The Strategies --- p.73 / Success Factors (3) --- p.76 / Problems --- p.79 / Taiwan --- p.81 / The Strategies --- p.81 / A Distinguished Success --- p.83 / Success Factors (5) --- p.87 / Perfect Sailing Ahead …? --- p.90 / Lessons for China --- p.91 / Chapter CHAPTER 6 --- CONCLUSION --- p.101 / BIBLIOGRAPHY --- p.103

by Shum Sze Kei. / Thesis (M.B.A.)--Chinese University of Hong Kong, 2000. / Includes bibliographical references (leaves 43-46). / ABSTRACT --- p.ii / TABLE OF CONTENTS --- p.iii / LIST OF TABLES --- p.v / CHART --- p.vi / Chapter / Chapter I. --- INTRODUCTION --- p.1 / Objectives Of The Study --- p.2 / Methodology Of The Study --- p.2 / Chapter II. --- MNCs IN CHINA --- p.4 / Leading MNCs In China --- p.4 / MNCs' Investments In China --- p.5 / Different Entry Modes & Impact Upon Financing --- p.6 / The Trend Of Entry Mode To China --- p.6 / Joint Venture --- p.7 / Wholly Foreign Owned Enterprise --- p.8 / Joint-stock Company --- p.8 / Holding Company --- p.9 / Group Finance Company --- p.10 / Chapter III. --- FINANCING NEEDS OF MNCs IN CHINA --- p.11 / General Financing Environment In China --- p.11 / Financing Concerns Of MNCs In China --- p.12 / Political Risk --- p.12 / Exchange Rate Risk --- p.13 / Foreign Exchange Control --- p.13 / General Financing Criteria Of MNCs In China --- p.14 / Maximizing Debt And Minimizing Equity --- p.14 / Maturity Matching --- p.14 / Currency Matching --- p.15 / Financing Needs Of MNCs In China --- p.15 / Short-term Domestic Currency Financing --- p.15 / Long-term Domestic Currency Financing --- p.16 / Short-term Foreign Currency Financing --- p.16 / Long-term Foreign Currency Financing --- p.16 / Hedging Instruments --- p.16 / Chapter IV. --- HOW MNCs IN CHINA CURRENTLY FINANCE THEIR OPERATIONS? --- p.18 / Availability Of Financing --- p.18 / Domestic Banks --- p.19 / Foreign Banks --- p.19 / Foreign Currency Financing --- p.20 / Trade Financing --- p.20 / Working Capital Financing --- p.21 / Long-term Financing --- p.22 / Syndicated Financing --- p.22 / Domestic Currency Financing --- p.22 / Working Capital Financing --- p.23 / Long-term Financing --- p.24 / Syndicated Financing --- p.24 / Hedging Instruments --- p.25 / Case Study - --- p.25 / Background Information --- p.25 / Financing Requirements --- p.26 / How The Company Currently Finance Their Operations? --- p.27 / A Few Observations From The Case Study --- p.27 / Chapter V. --- RESTRAINTS OF THE FINANCIAL MARKETS IN MEETING MNCs NEEDS --- p.29 / Lack Of Support From Domestic Banks --- p.29 / Lack Of RMB Financing From Foreign Banks --- p.30 / Lack Of Long Term Financing --- p.31 / Lack Of Access To Equity Financing --- p.31 / Lack Of Bond Market --- p.32 / Lack Of Hedging Instruments --- p.33 / Chapter VI. --- ANTICIPATED FUTURE CHANGES OF THE FINANCIAL MARKETS IN MEETING MNCs NEEDS --- p.34 / Impacts Of WTO --- p.34 / Impact On Banking Sector --- p.34 / Impact On Equity Markets --- p.35 / Impacts Of Banking Reform --- p.35 / Impact On Domestic Banks --- p.35 / Impact On Equity And Bond Markets --- p.37 / Chapter VII. --- RECOMMENDATIONS TO MNCs IN CHINA AS REGARDS FINANCING --- p.39 / Explore Other Entry Modes When Setting Up Operations In China --- p.39 / Centralize Finance Activities For Efficient Management --- p.39 / Cultivate Relationship With Domestic Bank --- p.40 / Maintain Good Relationship With Foreign Banks --- p.41 / Improve Financial Accounting And Reporting Of China's Operations --- p.41 / BIBLIOGRAPHY --- p.43