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International investment by state‐controlled enterprises: A source for concern?
Author(s) -
Enderwick Peter
Publication year - 2017
Publication title -
strategic change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.527
H-Index - 16
eISSN - 1099-1697
pISSN - 1086-1718
DOI - 10.1002/jsc.2127
Subject(s) - transparency (behavior) , subsidy , china , state ownership , business , software deployment , government (linguistics) , state (computer science) , accountability , foreign direct investment , private sector , investment (military) , public policy , market economy , economics , economic policy , industrial organization , finance , emerging markets , economic growth , politics , political science , macroeconomics , linguistics , philosophy , algorithm , computer science , law , operating system
The international business activities of state‐controlled enterprises appear to differ from those of otherwise comparable private‐sector firms, giving rise to issues that provide a basis for corrective policy actions. The rapid growth in international investment by state‐controlled enterprises (SCEs), particularly those of China, has raised considerable public disquiet and policy challenges in a number of host countries. Examination of the issues associated with Chinese SCEs reveals grounds for policy concern with regard to transparency and accountability, the pursuit of non‐commercial goals, and the deployment of artificially created competitive advantages resulting from government subsidization, preferential treatment, and structural distortions. In light of these concerns, we discuss possible policy responses at the level of the home country, the host economy, and through international regulation.