[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/ris/eaerev/0411.html
   My bibliography  Save this article

The Impact of Government Assistance to State-owned Enterprises on Foreign Start-ups: Evidence from Yangtze River Delta

Author

Listed:
  • Abu Risha, Omar

    (Dongbei University of Finance and Economics)

  • Wang, Qingshi

    (Dongbei University of Finance and Economics)

  • Dou, Shanshan

    (Jiangsu University)

  • Alhussam, Mohammed Ismail

    (Harbin Institute of Technology (Shenzhen))

  • Shi, Junguo

    (Jiangsu University)

Abstract
Different types of corporate ownership may affect the environment among firms and could influence the decisions of new entities in the region. This study determines the role of state-owned enterprises (SOEs) in hindering new foreign manufacturing firms in the Yangtze River delta (YRD). The negative binomial regression is used for city-sector level data and the following points summarize the results: Firstly, the unique privileges that SOEs enjoy alongside governmental support create difficulties for foreign firms trying to establish themselves near existing SOEs. Secondly, although core cities are more attractive to foreign firms than peripheral cities, the role of core-periphery reveals that, in spite of all the regional advantages core cities could offer, whenever the share of SOEs is higher, the core-periphery system will have an adverse impact on new foreign firms. In other words, government preference for SOEs can suppress the attraction of foreign startups. However, after 2008, the governmental authorities finally succeeded in implementing their promising policy of fair treatment and competition in only the core cities.

Suggested Citation

  • Abu Risha, Omar & Wang, Qingshi & Dou, Shanshan & Alhussam, Mohammed Ismail & Shi, Junguo, 2022. "The Impact of Government Assistance to State-owned Enterprises on Foreign Start-ups: Evidence from Yangtze River Delta," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 26(3), pages 205-225, September.
    • Handle: RePEc:ris:eaerev:0411
    DOI: 10.11644/KIEP.EAER.2022.26.3.411
    as

    Download full text from publisher

    File URL: https://dx.doi.org/10.11644/KIEP.EAER.2022.26.3.411
    File Function: Full text
    Download Restriction: no
    File URL: https://libkey.io/10.11644/KIEP.EAER.2022.26.3.411?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Umair Kashif & Junguo Shi & Sihan Li & Qinqin Wu & Qiuya Song & Shanshan Dou & Mengjie Wei & Snovia Naseem, 2024. "Navigating the digital divide: unraveling the impact of ICT usage and supply on SO2 emissions in China’s Yangtze River Delta," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.

    More about this item

    Keywords

    New Foreign Firms; State-owned Enterprises; Core–periphery; Yangtze River Delta;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • H79 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:eaerev:0411. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: JE Lee (email available below). General contact details of provider: https://edirc.repec.org/data/kieppkr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.