Foreign Investment and Socio-Economic Development in China: by Godfrey Yeung (auth.)

By Godfrey Yeung (auth.)

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The socio-economic effects of foreign investment in Dongguan. (i) (ii) (iii) (iv) (v) What are the opinions of factory managers about the productivity of local and migrant workers? How and to what extent is the inflow of foreign investment related to the economic growth and restructuring in Dongguan? What are the effects of foreign investment on the complementary and rival industries in Dongguan? Is guanxi playing a role in the operation of the firm? If yes, please illustrate it with examples. Are there any other socio-economic effects of concern to the firm, such as pollution?

13), Kueh and Ash (1996, p. 165) and Ding (1997, pp. 101–2) suggest that FDI by TNCs assists the development of domestic industries (including the complementary industries) in China and improves their efficiency through the introduction of modern managerial skills, new production technologies and injection of capital for new investment, as well as assisting infrastructure development. Tuan and Ng (1995, p. 393) also claim that the inflow of foreign investment has led to an increase in labour productivity in Guangdong.

The total income of country A is OACEQ* plus EKQQ* (the return of investment in country B), while the total income of country B is OBGFQ plus EFK (Chen, 1983, pp. 18–19; Grubel, 1982, pp. 5–7, 1987, p. 3 Moreover, there is a change of capital and labour income in both countries. 1). By the same token, in country B, the labour income increased from FRBG to ER*G, while the capital income decreased from OBRBFQ to OBR*KQ (Chen, 1983, pp. 18–9; Grubel, 1982, pp. 5–7, 1987, p. 404). C G F K E R* RB MPKB R* D RA MPKA Q* OA Home country Sources: Q Quantity of capital Chen, 1983, p.

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