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Title: Government policy and the competitive advantages of foreign-financed firms in guangdong province of southern China
Authors: Yeung, G
Mok, V 
Keywords: Government policy
Competitive advantages
Foreign-financed firms
Issue Date: 2002
Source: Asian business & management, 2002, v. 1, no. 2, p. 227-247 How to cite?
Journal: Asian business & management 
Abstract: This paper investigates the impact of various Chinese government policies on the competitive advantages of foreign-financed manufacturing firms in Guangdong province of southern China. The objectives of various government sector-specific policies are to lubricate the factor markets in labour, capital and products and to facilitate the operation of foreign-financed firms. However, the actual effects are often quite different: the ambiguity, complexity and inflexibility of policies impose higher transaction costs on foreign-financed firms. These disadvantages offset some economic benefits gained under the central government's preferential foreign direct investment policy and thus damages the competitive advantages of foreign-financed firms based in Guangdong. Worse still, the lack of co-ordination among various bureaux further hampers arbitration between government bureaux and foreign investors.
DOI: 10.1057/palgrave.abm.9200013
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