This paper explores the nature of the control that the Chinese government has over its economy, specifically, over foreign direct investments.
Written in 2008; 3,104 words; 25 sources; APA; $ 90.95
Paper Summary:
This paper briefly considers the "strong" versus the "weak" state-centered approaches and describes the various institutional arrangements which China instituted for allocating foreign direct investment (FDI). The paper looks at the evolution of China's regional development policy between the late 1970s and the present time. The paper then attempts to correlate the Chinese government's regional policy preferences to the allocation of FDI among the provinces. The paper concludes that the central government has only a limited capacity to compel private groups and local governments to adhere to policies it believes are in the national interest.
Outline:
The State Centered Approaches
Strong and Weak Versions
China: A Weak State-Centered Economy
China and FDI: The Initial Success
The Inability to Control Special Interests
The Lack of Social Embeddedness
The Failure of Redirection of FDI in China
Conclusion
From the Paper:
"Does a modern government have the power to direct foreign capital investments, such as foreign direct investment (FDI), to particular regions which the government wishes to see developed? To ask this question is to ask if the politics of economic development in a given country is or is not "state-centered." To say that a nation can impose a state-centered approach to issues of economic development is to say that the government can assert authority over both the population it governs and also over actions that take place within its territory. In the modern world, foreign capital investment in developing countries has raised a serious challenge to the assumption that states do control what goes on within their territory."
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