Political Connection, Ownership, and Post-Crisis Industrial Upgrading Investment: Evidence from China. Issue 12 (26th September 2018)

• Record Type: Journal Article
• Authors: Wu, Bao; Liang, Haiyan; Shen, Yan
• Is Part Of: Emerging markets finance & trade. Volume 54:Issue 12(2018)
• Page Start: 2651
• Page End: 2668
• Publication Date: 2018-09-26
• Subjects: family control -- government ownership -- industrial upgrading -- political connections; Balkan Peninsula -- Commerce -- Periodicals; Balkan Peninsula -- Foreign economic relations -- Periodicals; Europe, Central -- Commerce -- Periodicals; Europe, Central -- Foreign economic relations -- Periodicals; Europe, Eastern -- Commerce -- Periodicals; Europe, Eastern -- Foreign economic relations -- Periodicals; Turkey -- Commerce -- Periodicals; Turkey -- Foreign economic relations -- Periodicals; Asia -- Commerce -- Periodicals; Asia -- Foreign economic relations -- Periodicals; Eurasia -- Commerce -- Periodicals; Eurasia -- Foreign economic relations -- Periodicals; 382.05
• DOI: 10.1080/1540496X.2018.1491400
• Languages: English
• ISSNs: 1540-496X

Abstract

ABSTRACT: This article investigates the effect of political connections, along with government ownership and family control, on the intensity of investment in industrial upgrading, including the intensity of R&D, facility upgrading, and marketing, in the context of post-crisis recovery through industrial upgrading in emerging economies. Based on empirical evidence in China, the article finds that political connections of top executives are positively associated with investment in upgrading. The effects of political connections on the intensity of investment in R&D and marketing are negatively moderated by both government ownership and family control, whereas the relationship between political connections and the intensity of investment in facilities upgrading is positively moderated by government ownership and negatively moderated by family control.