The effects of the governance environment on the choice of investment mode and the strategic implications

Journal of World Business

Volumn 42, Issue 1, 2007, Pages 80-98

  Li, Shaomin ^a   Filer, Larry ^a  

^a OLD DOMINION UNIVERSITY   (United States)

Author keywords

Direct investment; Governance environment; Indirect (portfolio) investment; Private ordering; Public ordering; Relation based; Rule based

Indexed keywords

EID: 33846358959     PISSN: 10909516     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jwb.2006.11.006     Document Type: Article

References (65)

1. Albuquerque R. The composition of international capital flows: Risk sharing through foreign direct investment. Journal of International Economics 61 (2003) 353-384
2. Almond G.A. Introduction: A functional approach to comparative politics. In: Almond G.A., and Coleman J.S. (Eds). The politics of the developing areas (1960), Princeton University Press, Princeton, NJ
3. Ball D., McCulloch W., Frantz P., Geringer M., and Minor M. International business: The challenge of global competition (2002), McGraw-Hill, Boston
4. Burns J., Peltason J., Cronin T., and Magleby D. Government by the people (2001), Prentice Hall, Upper Saddle River, NJ
5. Butler K., and Joaquin D. A note on political risk and the required return on foreign direct investment. Journal of International Business Studies 29 (1998) 599-608
6. Caijing (Finance Magazine) (2001). The Yin Guang Xia Trap. August.
7. Child J. Trust-The fundamental bond in global collaboration. Organizational Dynamics 29 (2001) 274-288
8. Diamonte R.L., Liew J.M., and Stevens R.L. Political risk in emerging and developed markets. Financial Analysts Journal May/June (1996) 71-76
9. English, P., & Moore, W. (2002). Property rights ambiguity and the effect of foreign investment decisions on firm value. In 2002 Index of economic freedom, G. Driscoll, K. Holmes, & M. O'Grady (Eds.). Washington, DC: The Heritage Foundation and The Wall Street Journal.
10. Erb C., Harvey C., and Viskanta T. Political risk, economic risk, and financial risk. Financial Analysts Journal November/December (1996) 29-46
11. Fatehi S.K., and Safizadeh M. The association between political instability and flow of foreign direct investment. Management International Review 29 (1989) 4-13
12. Fine A. Dealing away risk in foreign infrastructure investment. Journal of Structured and Project Finance 9 (2003) 6-58
13. Freedom House (2000 and 2005). Freedom in the world survey. At: www.freedomhouse.org.
14. Fukuyama F. Trust, the social virtues and the creation of prosperity (1995), New York, Free Press
15. Gambetta D. Mafia: The price of distrust. In: Gambetta D. (Ed). Trust (1988), Basil Blackwell, New York
16. Garibaldi P., Mora N., Sahay R., and Zettelmeyer J. What moves capital to transition economies?. IMF Staff Papers 48 Special Issue (2001) 109-145
17. Gastanaga V., Nugent J., and Pashamova B. Host country reforms and FDI inflows: How much difference do they make?. World Development 26 (1998) 1299-1314
18. Globerman S., and Shapiro D. Governance infrastructure and U.S. foreign direct investment. Journal of International Business Studies 34 (2003) 19-39
19. Grant Thornton International (2005). The GAAP 2001 survey of national accounting standards against IAS is now available at: www.gt.org/survey/gaap_2001.asp. Accessed October 15, 2005.
20. Greif A. Contracting, enforcement and efficiency: Economics beyond the law. Proceedings of the annual World Bank conference on development economics (1997), The World Bank, Washington, DC
21. Guthrie D. The declining significance of guanxi in China's economic transition. China Quarterly 154 (1998) 254-282
22. Gwartney, J., Lawson, R., Park, W., Wagh, S., Edwards, C., & de Rugy, V. (2002 and 2005). Economic Freedom of the World: 2002 Annual Report. Vancouver: The Fraser Institute. At: www.freetheworld.com.
23. Habib M., and Zurawicki L. Corruption and foreign direct investment. Journal of International Business Studies 33 (2002) 291-307
24. Hejazi W., and Safarian A. Explaining Canada's changing FDI patterns (2002), University of Toronto, Memo
25. Henisz W. The institutional environment for multinational investment. Journal of Law, Economics and Organization 16 (2000) 334-364
26. Hill C. International business: Competing in the global marketplace. 4th ed. (2003), McGraw-Hill Irwin, Boston, MA
27. Huang, X. (2003). Shenong bankuai "heimu chanshen" jupian aixing "nong" (Huge fraud schemes behind "black curtains" favor the "agricultural sector"). At: http://www.588188.net/stock/jgcz/html/2003617173067.htm, June 17.
28. IMF (1996-2000). Selected issues from 1996 through 2000. International monetary fund staff country reports. Washington, DC: International Monetary Fund.
29. International Monetary Fund (IMF). International financial statistics yearbook (1998), International Monetary Fund, Washington, DC
30. IMF. International financial statistics (2003), International Monetary Fund, Washington, DC
31. Inglehart R. 1995-1997 World values survey (1995-1997), Institute for Social Research, University of Michigan, Ann Arbor
32. Inglehart R. Trust, well-being, and democracy. In: Warren M.E. (Ed). Democracy and trust (1999), Cambridge University Press, Cambridge 88-120
33. Intriligator M. Privatisation in Russia has led to criminalisation. Australian Economic Review 105 (1994) 4-14
34. Itay, G., & Razin, A. (2005). Foreign direct investment vs. foreign portfolio investment. NBER working paper series. Working paper 11047.
35. Kaufmann D., Kraay A., and Zoido-Lobaton P. Aggregating governance indicators. World Bank Policy Research Working Paper (1999) 2195
36. Kaufmann, D., Kraay, A. & Zoido-Lobaton, P. (2002). Governance matters. II: Updated indicators for 2000/01. World Bank Policy Research Working Paper, 2771.
37. La Porta R., Lopez-de-Silanes F., Shleifer A., and Vishny R. Law and finance. Journal of Political Economy 106 (1998) 1113-1155
38. Li, S. (1999). Relation-based versus rule-based governance: An explanation of the East Asian miracle and Asian crisis. Paper presented at the American Economic Association annual meeting. Listed on the Social Science Research Network (http://papers.ssrn.com/paper.taf?abstract_id=200208), 2000 (Reprinted in Review of International Economics 2003, 11: 651-673).
39. Li S. Why is property right protection lacking in China? An institutional explanation. California Management Review 46 3 (2004) 100-115
40. Li S. The impact of information and communication technology on relation-based governance systems. Information Technology for Development 11 2 (2005) 105-122
41. Li S., Park S., and Li S. The great leap forward: The transition from relation-based governance to rule-based governance. Organizational Dynamics 33 (2004) 63-78
42. Loree D., and Guisinger S. Policy and non-policy determinants of U.S. equity foreign direct investment. Journal of International Business Studies 26 (1995) 281-299
43. Martin R. Transforming management in Central and Eastern Europe (1999), Oxford University Press, New York
44. Milgrom P., North D., and Weingast B. The role of institutions in the revival of trade: The law merchant, private judges, and the Champagne Fairs. Economics and Politics 2 (1990) 1-23
45. Nobes, C. (Ed.) (2000). GAAP 2000: A survey of national accounting rules in 53 countries. At: www.pwcglobal.com.
46. North D. Institutions, institutional change, and economic performance (1990), Cambridge University Press, London
47. Olson M. Dictatorship, democracy, and development. American Political Science Review 87 (1993) 567-576
48. Pearce J. How we can learn how governments matter to management and organization. Journal of Management Inquiry 10 (2001) 103-112
49. Peerenboom R. Social networks, rule of law and economic growth in China: The elusive pursuit of the right combination of private and public ordering. Global Economic Review 31 (2002) 1-20
50. Platteau J.P. Behind the market stage where real societies exist-Part I: The rule of public and private order institutions. Journal of Development Studies 30 (1994) 533-577
51. Platteau J.P. Behind the market stage where real societies exist-Part II: The rule of public and private order institutions. Journal of Development Studies 30 (1994) 753-817
52. Posner R. Creating a legal framework for economic development. The World Bank Research Observer 13 (1998) 1-11
53. Rawls J. A theory of justice (1971), Harvard University Press, Cambridge
54. Reporters Without Borders (2003 and 2005). Press freedom index. At: www.rsf.org.
55. Scofield B., and Wilhelm P. International accounting standards and corruption (2004), University of Texas, Permian Basin, Mimeo
56. In: Sheimo M., Loizou A., Aves A., et al. (Eds). International encyclopedia of the stock market (1999), Fitzroy Dearborn, Chicago
57. Stevens F.Y. Quantitative perspective on political risk analysis for direct foreign investment-A closer look. Multinational Business Review Spring (1997) 77-84
58. The Economist (2000). China: Tangled web, 355 (8165), April 8: CS7.
59. The Economist (2001). The greatest leap forward, 359 (8216), April 7: 17-18.
60. Uslaner E. Democracy and social capital. In: Warren M.E. (Ed). Democracy and trust (1999), Cambridge University Press, Cambridge
61. Warren M.E. Introduction. In: Warren M.E. (Ed). Democracy and trust (1999), Cambridge University Press, Cambridge
62. Wei S. How taxing is corruption on international investors. Review of Economics and Statistics 82 (2000) 1-11
63. World Bank. Private capital flows to developing countries: The road to financial integration (1997), Oxford University Press, New York
64. World Bank. World development indicators (2002), World Bank, Washington, DC
65. World Bank. Transition: The first ten years-Analysis and lessons for Eastern Europe and the former Soviet Union (2002), World Bank, Washington, DC