Download or read book Ethnic Investors Vs. Foreign Investors written by Min Ye and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper examines diaspora investments in China and India, compared to investments made by Western MNCs, to demonstrate the unique policy role of ethnic investors. In China, ethnic capital (EDI) holds a significant share of incoming FDI, a phenomenon having been noted insufficiently. When EDI is noted, it has been treated as a product of Beijing's pro-FDI policy, rather than the cause of the liberalization. I argue in this paper that EDI has in fact driven the process of pro-FDI policy making in the PRC by demonstrating the superiority of openness and incorporating domestic interest groups in support of FDI. In India, the amount of EDI has been smaller than FDI; total FDI has been much smaller than China also. Conventional wisdom has treated diapora Indians as unimportant in India's economic liberalization since the 1990s. Again, I contend in this article that EDI has also been important for India's FDI liberalization, more quietly than diaspora Chinese in the PRC, to be sure. India's FDI liberalization has generally been more limited than China, with the exception of software, and in this industry, EDI's role was salient.