TY  - JOUR
AU  - Huang,Yasheng
AU  - Jin,Li
AU  - Qian,Yi
TI  - Does Ethnicity Pay
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 16294
PY  - 2010
Y2  - August 2010
UR  - http://www.nber.org/papers/w16294
L1  - http://www.nber.org/papers/w16294.pdf
N1  - Author contact info:
Yasheng Huang
MIT Sloan School of Management
50 Memorial Drive, E52, 5th Floor
Cambridge, MA  02142
Tel: 617-253-9768
Fax: 617-253-2660
E-Mail: yshuang@mit.edu

Li Jin
Department of Finance
Guanghua School of Management
Peking University
Beijing 100871
China
E-Mail: ljin@gsm.pku.edu.cn

Yi Qian
Department of Marketing
Kellogg School of Management
Northwestern University
2001 Sheridan Road
Evanston, IL 60208
Tel: 847/491-7113
Fax: 847/491-2498
E-Mail: yiqian@kellogg.northwestern.edu
AB  - Most of the economic analyses of the overseas-Chinese network focus on trade and investment flows at the country level. In this paper, we analyze the effects of the ethnic Chinese network at the firm level. Contrary to the conventional wisdom, we find that ethnic-Chinese FDI firms in China in fact underperform non-ethnic-Chinese FDI firms. We also find that the performance of ethnic-Chinese firms deteriorates over time. We present evidence consistent with the hypothesis that ethnic-Chinese firms under-invest in those firm attributes that may enhance long-term performance, such as human capital and technology. Our findings raise both empirical and normative implications of ethnic ties.
ER  -