Does Ethnicity Pay? Evidence from Overseas Chinese FDI in China

  title={Does Ethnicity Pay? Evidence from Overseas Chinese FDI in China},
  author={Y. Huang and L. Jin and Y. Qian},
  journal={Review of Economics and Statistics},
  • Y. Huang, L. Jin, Y. Qian
  • Published 2013
  • Business, Economics
  • Review of Economics and Statistics
  • Most of the economic analyses of the overseas Chinese network focus on trade and investment flows at the country level. In this paper, we analyze the effects of the ethnic Chinese network at the firm level. Contrary to the conventional wisdom, we find that ethnic Chinese FDI firms in China in fact underperform nonethnic Chinese FDI firms. We also find that the performance of ethnic Chinese firms deteriorates over time. We present evidence consistent with the hypothesis that ethnic Chinese firms… CONTINUE READING
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