Spring 2004 | V ol.46, No.3 | REPRINT SERIES California Review Management Why Is Proper ty Right Protection Lacking in China? An Institutional Explanation Shaomin Li © 2004 by The Regents of the University of California Why Is Property Right Protection Lacking in China? AN INSTITUTIONAL EXPLANATION Shaomin Li oreign investors in China face a great challenge in protecting their property rights. On the one hand, the Chinese government is very eager to attract foreign investments and has been making a great F effort to improve the protection of property rights. On the other hand, many foreign ﬁrms found that their property rights are routinely violated by public actions, private actions, or both. Why is protecting property rights in China so difﬁcult? What are the causes of weak property right protection in China? If foreign investors’ property rights are constantly expropriated in China, why do they still keep coming to China in large numbers? Finally, what policy options does China have to improve the situation, and what strategic options do investors have to reduce their risks? This article addresses these questions by analyzing the institutional change in China, using the institutional theory developed by North. Expropriations in China Expropriation
California Management Review – SAGE
Published: Apr 1, 2004
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