Does Ethnicity Pay / Yasheng Huang, Li Jin, Yi Qian.

Format:

Book

Author/Creator:

Huang, Yasheng.

Contributor:

National Bureau of Economic Research.

Jin, Li.

Qian, Yi.

Series:

Working Paper Series (National Bureau of Economic Research) no. w16294.

NBER working paper series no. w16294

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2010.

Summary:

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 non-ethnic-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 under-invest in those firm attributes that may enhance long-term performance, such as human capital and technology. Our findings raise both empirical and normative implications of ethnic ties.

Notes:

Print version record

August 2010.