Ethnic Networks in FDI and the Impact of Institutional Development

  title={Ethnic Networks in FDI and the Impact of Institutional Development},
  author={S. Tong},
  journal={Wiley-Blackwell: Review of Development Economics},
  • S. Tong
  • Published 2005
  • Economics
  • Wiley-Blackwell: Review of Development Economics
  • Ethnic Chinese entrepreneurs are known for their active business networking practices, particularly in Southeast Asia. This paper empirically investigates the role of ethnic Chinese networks in promoting foreign direct investment (FDI). We further evaluate whether the effectiveness of networking activities are affected by the level of economic and institutional development of the source and the host countries. Using a standard gravity model, we find that ethnic Chinese networks are significant… CONTINUE READING
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