The Effect Of Ethnic Chinese Business Network On Inward FDI Into China

The role of business and social networks in promoting international trade and investment has attracted increasing research in recent years. Ethnic Chinese Business Network (ECBN) is the most representative business and social networks since it is much easier to identify their members. Over Chinese have the most well-known ethnic networks active in trade and in investment. The vigorous networking activity among ethnic Chinese in Southeast Asia and their commercial success have both been highly visible, and these networks are believed to have played a crucial role in the region's fast growth and Foreign Direct Investment in china.What mechanisms have made ECBN facilitate bilateral trade and investment? ECBN working as a loose network to collocate resource between market and enterprise has a particular mechanism. This paper will introduce the particular mechanism of ECBN, making us known the role ECBN and oversea Chinese community promote the bilateral trade and investment.Most of inward FDI into china belong to members of Ethnic Chinese Business Network ( ECBN ) . Is there a significant positive role in inward FDI of ECBN? This paper empirically investigates the role of ethnic Chinese networks in promoting foreign direct investment (FDI) into china. At the same time we will introduce the formation, characteristic and function of ECBN, analyzing the crucial role of ECBN(working as social capital) in promoting bilateral trade and investment.