The Influence Mechanism and Effect of Foreign Capital Entering to the Changes of China's Industrial Sectors Price

Mao Yi

doi:doi:10.11648/j.ajtab.20200602.11

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The Influence Mechanism and Effect of Foreign Capital Entering to the Changes of China's Industrial Sectors Price

Mao Yi

Published in American Journal of Theoretical and Applied Business (Volume 6, Issue 2)

Received: 17 June 2020 Accepted: 29 June 2020 Published: 17 July 2020

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Abstract

In recent years, many scholars attributed the phenomenon of "price manipulation" and "mutually negotiated price" frequently reported in the media to the control of foreign companies in the industry. However, there are also some scholars who held the opposite view that none of the foreign-invested enterprises has raised prices of their products. To this end, this study analyzed the influence mechanism and effect of foreign capital entering to the changes of china's industrial sectors price using panel data of China's industrial sectors. The study found that: the entry of foreign capital influenced the change of China's industrial sectors price through raising labor productivity and weakening monopoly power. Research results indicate that, since China's reform and opening up, the entry of foreign capital promoted the raising of the Chinese industry sectors labor productivity, weakening monopoly power of some industry in China, reducing China's industrial sectors prices and curbing inflation on the whole, thereby it improved the level of the Chinese social welfare.

Published in	American Journal of Theoretical and Applied Business (Volume 6, Issue 2)
DOI	10.11648/j.ajtab.20200602.11
Page(s)	13-16
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Foreign Capital’s Entry, Labor Productivity, Monopoly Power, Price Change

References

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APA Style

Mao Yi. (2020). The Influence Mechanism and Effect of Foreign Capital Entering to the Changes of China's Industrial Sectors Price. American Journal of Theoretical and Applied Business, 6(2), 13-16. https://doi.org/10.11648/j.ajtab.20200602.11

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ACS Style

Mao Yi. The Influence Mechanism and Effect of Foreign Capital Entering to the Changes of China's Industrial Sectors Price. Am. J. Theor. Appl. Bus. 2020, 6(2), 13-16. doi: 10.11648/j.ajtab.20200602.11

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AMA Style

Mao Yi. The Influence Mechanism and Effect of Foreign Capital Entering to the Changes of China's Industrial Sectors Price. Am J Theor Appl Bus. 2020;6(2):13-16. doi: 10.11648/j.ajtab.20200602.11

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@article{10.11648/j.ajtab.20200602.11,
  author = {Mao Yi},
  title = {The Influence Mechanism and Effect of Foreign Capital Entering to the Changes of China's Industrial Sectors Price},
  journal = {American Journal of Theoretical and Applied Business},
  volume = {6},
  number = {2},
  pages = {13-16},
  doi = {10.11648/j.ajtab.20200602.11},
  url = {https://doi.org/10.11648/j.ajtab.20200602.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20200602.11},
  abstract = {In recent years, many scholars attributed the phenomenon of "price manipulation" and "mutually negotiated price" frequently reported in the media to the control of foreign companies in the industry. However, there are also some scholars who held the opposite view that none of the foreign-invested enterprises has raised prices of their products. To this end, this study analyzed the influence mechanism and effect of foreign capital entering to the changes of china's industrial sectors price using panel data of China's industrial sectors. The study found that: the entry of foreign capital influenced the change of China's industrial sectors price through raising labor productivity and weakening monopoly power. Research results indicate that, since China's reform and opening up, the entry of foreign capital promoted the raising of the Chinese industry sectors labor productivity, weakening monopoly power of some industry in China, reducing China's industrial sectors prices and curbing inflation on the whole, thereby it improved the level of the Chinese social welfare.},
 year = {2020}
}

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TY  - JOUR
T1  - The Influence Mechanism and Effect of Foreign Capital Entering to the Changes of China's Industrial Sectors Price
AU  - Mao Yi
Y1  - 2020/07/17
PY  - 2020
N1  - https://doi.org/10.11648/j.ajtab.20200602.11
DO  - 10.11648/j.ajtab.20200602.11
T2  - American Journal of Theoretical and Applied Business
JF  - American Journal of Theoretical and Applied Business
JO  - American Journal of Theoretical and Applied Business
SP  - 13
EP  - 16
PB  - Science Publishing Group
SN  - 2469-7842
UR  - https://doi.org/10.11648/j.ajtab.20200602.11
AB  - In recent years, many scholars attributed the phenomenon of "price manipulation" and "mutually negotiated price" frequently reported in the media to the control of foreign companies in the industry. However, there are also some scholars who held the opposite view that none of the foreign-invested enterprises has raised prices of their products. To this end, this study analyzed the influence mechanism and effect of foreign capital entering to the changes of china's industrial sectors price using panel data of China's industrial sectors. The study found that: the entry of foreign capital influenced the change of China's industrial sectors price through raising labor productivity and weakening monopoly power. Research results indicate that, since China's reform and opening up, the entry of foreign capital promoted the raising of the Chinese industry sectors labor productivity, weakening monopoly power of some industry in China, reducing China's industrial sectors prices and curbing inflation on the whole, thereby it improved the level of the Chinese social welfare.
VL  - 6
IS  - 2
ER  -

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Author Information

Mao Yi

School of Economics and Management, Xi'an Shiyou University, Xi'an, China

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APA Style

Mao Yi. (2020). The Influence Mechanism and Effect of Foreign Capital Entering to the Changes of China's Industrial Sectors Price. American Journal of Theoretical and Applied Business, 6(2), 13-16. https://doi.org/10.11648/j.ajtab.20200602.11

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ACS Style

Mao Yi. The Influence Mechanism and Effect of Foreign Capital Entering to the Changes of China's Industrial Sectors Price. Am. J. Theor. Appl. Bus. 2020, 6(2), 13-16. doi: 10.11648/j.ajtab.20200602.11

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AMA Style

Mao Yi. The Influence Mechanism and Effect of Foreign Capital Entering to the Changes of China's Industrial Sectors Price. Am J Theor Appl Bus. 2020;6(2):13-16. doi: 10.11648/j.ajtab.20200602.11

Copy | Download

@article{10.11648/j.ajtab.20200602.11,
  author = {Mao Yi},
  title = {The Influence Mechanism and Effect of Foreign Capital Entering to the Changes of China's Industrial Sectors Price},
  journal = {American Journal of Theoretical and Applied Business},
  volume = {6},
  number = {2},
  pages = {13-16},
  doi = {10.11648/j.ajtab.20200602.11},
  url = {https://doi.org/10.11648/j.ajtab.20200602.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20200602.11},
  abstract = {In recent years, many scholars attributed the phenomenon of "price manipulation" and "mutually negotiated price" frequently reported in the media to the control of foreign companies in the industry. However, there are also some scholars who held the opposite view that none of the foreign-invested enterprises has raised prices of their products. To this end, this study analyzed the influence mechanism and effect of foreign capital entering to the changes of china's industrial sectors price using panel data of China's industrial sectors. The study found that: the entry of foreign capital influenced the change of China's industrial sectors price through raising labor productivity and weakening monopoly power. Research results indicate that, since China's reform and opening up, the entry of foreign capital promoted the raising of the Chinese industry sectors labor productivity, weakening monopoly power of some industry in China, reducing China's industrial sectors prices and curbing inflation on the whole, thereby it improved the level of the Chinese social welfare.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - The Influence Mechanism and Effect of Foreign Capital Entering to the Changes of China's Industrial Sectors Price
AU  - Mao Yi
Y1  - 2020/07/17
PY  - 2020
N1  - https://doi.org/10.11648/j.ajtab.20200602.11
DO  - 10.11648/j.ajtab.20200602.11
T2  - American Journal of Theoretical and Applied Business
JF  - American Journal of Theoretical and Applied Business
JO  - American Journal of Theoretical and Applied Business
SP  - 13
EP  - 16
PB  - Science Publishing Group
SN  - 2469-7842
UR  - https://doi.org/10.11648/j.ajtab.20200602.11
AB  - In recent years, many scholars attributed the phenomenon of "price manipulation" and "mutually negotiated price" frequently reported in the media to the control of foreign companies in the industry. However, there are also some scholars who held the opposite view that none of the foreign-invested enterprises has raised prices of their products. To this end, this study analyzed the influence mechanism and effect of foreign capital entering to the changes of china's industrial sectors price using panel data of China's industrial sectors. The study found that: the entry of foreign capital influenced the change of China's industrial sectors price through raising labor productivity and weakening monopoly power. Research results indicate that, since China's reform and opening up, the entry of foreign capital promoted the raising of the Chinese industry sectors labor productivity, weakening monopoly power of some industry in China, reducing China's industrial sectors prices and curbing inflation on the whole, thereby it improved the level of the Chinese social welfare.
VL  - 6
IS  - 2
ER  -

Copy | Download