Research On The Development Of Chinese Transnational Corporation

This paper takes Chinese transnational corporations (TNCs) as its study object and focuses on their development. Under the background of globalization and the rapid development of China's economy, such a study is of pressing realistic significance and theoretical significance as well for enriching and improving the theory of TNC.The theory of TNC is generalization and abstraction of the TNC phenomena. The paper first makes a detailed generalization of the mainstream TNC theory, the related TNC theory and the TNC theory of developing countries. Then it proceeds to question and comment on these theories and presents the writer's viewpoints, mainly involving the relationship between TNC theory and foreign direct investment (FDI) theory, the explanatory power of the Theory of Internalization, internalization degree and internalization orientation, a statistic-based definition of FDI, the relationship between internalization advantage and FDI in the OIL paradigm and the explanation bounds of the paradigm, etc.The paper analyses the developing conditions for Chinese TNCs in detail, especially their development course, and the macro and micro conditions for their development. The writer holds that, in terms of macro conditions and national development strategy, Chinese TNCs have gained favorable basics and exterior motive force; in terms of micro conditions, although there is a distance between corporations of China and corporations of developed countries on the whole, some Chinese corporations have advantages of their own and have acquainted the capability of transnational development, and it will not be long before a number of Chinese TNCs come forth. The paper presents several points of Chinese TNC development, including the large-scale enterprises and enterprise groups, enterprise clusters, small and medium-sized enterprises characteristic in business, and the enterprises of product saturation in the domestic market. Among them, the enterprise cluster has especial value and practical significance of study. The paper makes a detailed analysis of enterprise clusters by means of a case study.The theoretical analysis of Chinese TNCs is mainly made in Chapter 5 of the paper. It analyses the basics and background for the development of Chinese TNCs, including the effect of the characters of Chinese transforming economy, enterprise system, market, enterprise capacity and the like upon the development of Chinese TNCs. The theories involved are those of institutional economics, transforming economy, industrial economy and enterprise development. To ascertain the development phase of Chinese TNCs, the paper mainly compares the index of GDP and FDI outflow with the same indexes of developed countries at homologous time. This is a fresh study mode according to the literature that has been searched by the writer. The conclusion is that the present economic level of China is approximately equal to that of the developed countries in 1970s, and the present Chinese FDI outflow is approximately equal to that of the developed countries between 1960s and 1970s, and that the Chinese FDI outflow lags behind its economic development. In its demonstration of the industrial transfer limit theory, the paper puts forward its main viewpoint, namely, FDI is a means of transferring behindhand industry and heightening industrial structure adopted by developed countries, but this type of industrial transfer will not move in a cycle and the limit of the transfer will occur inevitably. In other words, FDI is not a means of improving industrial structure for such big developing countries as China and India. The paper, too, advances the theory of institution advantage, holding that the development of Chinese TNCs will not be explained reasonably unless institution advantage is entered into the OIL paradigm. This theory enriches and complements the theory of TNC. In addition, the paper makes a detailed discussion about the late-coming advantages of Chinese TNC development.In the respect of positive study, the paper analyses the macro accelerating mechanism of Chinese TNC development, covering the effect and guide of policies, the guarantee of law, the underway support of finance, the business hastening function of public finances and the risk management of insurance. And the paper creates a VAR model of the six macro-economic variables of FDI outflow, GDP, amount of export, gross fixed capital formation, FDI out stock and foreign exchange reserves, focusing on the structure analysis, and finds that there is a long-term equilibrium relation among the variables. In light of the sample data of 120 sample units, the writer researches Chinese corporations with special reference to their trans-border success status, preparations, developing status, intention, capability and conditions.