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20891. Why Half of China's Overseas Acquisitions Could Not Be Completed

Author:
Jianhong Zhang and Haico Ebbers
Publication Date:
01-2010
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
About half of China's overseas acquisition attempts have not been completed; the chance of success is much lower than worldwide. This study provides an overview of China's overseas acquisition, and investigates the reasons behind the low likelihood that an acquisition deal is completed. By using a sample that consists of 1,324 overseas acquisition attempts by Chinese firms, the study found that multi-level determinants influence the outcome of China's overseas acquisitions. Based on the findings, we conclude that the distinctive social and economic environment of acquirers; ownership and low competitiveness of these acquirers; lack of global experience; and sensitiveness of the industry all hamper Chinese acquisition deals.
Political Geography:
China

20892. Mega-events, Local Economies, and Global Status: What Happened before the 2008 Olympics in Beijing and the 2010 World Expo in Shanghai

Author:
Jian Sun and Lin Ye
Publication Date:
01-2010
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
Mega-events such as the World Cup and the Olympics have been used for economic development, urban transformation and global status enhancement. Beijing and Shanghai embraced these purposes when they won the bids for the 2008 Olympics and the 2010 World Expo respectively. This article examines the pre-event economic changes in Beijing and Shanghai that are associated with their pursuit of mega-events. Changes in a group of economic indicators are tracked from 1997 to 2006. It was found that after winning the bids for the Olympics and the World Expo, Beijing and Shanghai experienced greater growth in construction and tourism, a speeding-up in economic development and restructuring, and an improvement in physical infrastructure. However, the enhancement of global exposure was not accompanied by growth in foreign trade and in the finance, insurance and real estate (FIRE) industries. The empirical analyses place the mega-events in large economic contexts and provide a base for future post-event studies.
Political Geography:
Shanghai and Beijing

20893. New Approaches to Cross-Strait Integration and Its Impacts on Taiwan's Domestic Economy: An Emerging "Chaiwan"?

Author:
Gordon C. K. Cheung
Publication Date:
01-2010
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
Taiwan's Legislative Yuan and Presidential elections in January and March 2008 respectively re-orientated cross-Strait relations from hostility to co-operation. On 4 November 2008, Chen Yunlin, head of the Association for Relations Across the Taiwan Straits (ARATS), and Chiang Pin-kun (Jiang Bingkun), chairman of Taiwan's Straits Exchange Foundation (SEF), meeting in the Second Chiang-Chen Talks in Taiwan, took a historical step in the further development of cross-Strait relations. Agreements were signed on direct air and sea transport, postal services and food-safety security. On 22 December 2009, the Fourth Chiang- Chen Talks took place in Taizhong and more substantial and technical agreements were signed on agriculture, inspection/ accreditation and fisheries. It seems that continuous integration between China and Taiwan is inevitable. To address the implications of this process for Taiwan's domestic economy, four dimensions of the current cross-Strait relationship are scrutinized: guanxi, plutocracy, legalism and the idea of a Chinese Common Market. It is argued that in order to intensify economic co-operation across the Taiwan Strait, more institutionalization of the cross-Strait relationship must be brought about.
Political Geography:
China and Taiwan

20894. Between Dependency and Autonomy – Taiwanese Entrepreneurs and Local Chinese Governments

Author:
Lee Chun-yi
Publication Date:
01-2010
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
This paper focuses on the changing interaction between Taiwanese entrepreneurs and local Chinese governments. Through the analysis of this changing process, it can be seen that Taiwanese businesses are a special “asset” of Chinese governments. The main argument of this paper is that both central and local governments in China have strategic considerations in respect of Taiwanese businesses. The Chinese central government values Taiwanese businesses because more Taiwanese investment in China strengthens the Beijing government in negotiations with the Taibei government. Nevertheless, since the Kuomintang (KMT) (Guomindang) regained power in 2008, the strategic value of Taiwanese businesses in the cross-Strait relationship seems to have decreased. The central government has created a profitable macro-environment enabling local officials to give a warm welcome to Taiwanese businesses. Chinese local governments value Taiwanese businessmen not only because of the central government's deliberate policy but also because they are pursuing their own self-interest. This paper firstly focuses on the changing interaction between Taiwanese businesses and Chinese local governments. It then further analyses the different but complementary interests of both central and local governments in China in relation to Taiwanese investors.
Political Geography:
China, Taiwan, and Beijing

20895. The Political Thinking of the Mainland Taishang: Some Preliminary Observations from the Field

Author:
Gunter Schubert
Publication Date:
01-2010
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
This article explores the political thinking of Taiwanese business people (taishang) and factory managers (taigan) on the Chinese mainland by drawing on qualitative data gathered between 2006 and 2008 in the Pearl River Delta and the Shanghai/Kunshan metropolitan area. An ideal type of taishang is constructed to explain the major features of their identification with Taiwan, their perspectives on cross-Strait relations, their integration in Chinese society and their self-assessment as political actors in the shaping of cross-Strait relations. An important finding of this study is that the taishang is a rather apolitical figure who does not see much leeway to develop autonomous political leverage. However, this may change gradually as cross-Strait relations have eased significantly since the Kuomint ang (KMT) (Guomindang) came to power in mid-2008 and the governments in Beijing and Taibei have experienced a rapprochement.
Political Geography:
Shanghai

20896. The Choice of Constitutional Amendments in a Young Democracy – From Indirect to Direct Election of the President in Taiwan

Author:
Liao Da-chi and Chang Hui-chih
Publication Date:
01-2010
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
This paper at tempts to determine the kind of constitutional rule preferred in a young democracy when an institutional opportunity for constitutional change occurs. It adopts the standpoint of collective decision-making. This approach involves two crucial theoretical elements: the calculation of the interests of the political elite and the masses' comprehension of what democracy is. The case studied here is Taiwan's constitutional choice between the direct and indirect election of the president during the period from 1990 to 1994. The paper first examines how the political leaders might have used both the logic of power maximization and of power-loss minimization to choose their position on the issue. It then demonstrates that survey results indeed showed that respondents better understood the direct form of electing the president and therefore supported it over the indirect one. This support helped the direct form to eventually win out.
Political Geography:
Taiwan

20897. Measuring Variance in Subnational Regimes: Results from an Expert-Based Operationalization of Democracy in the Argentine Provinces

Author:
Carlos Gervasoni
Publication Date:
01-2010
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
This paper presents an expert-based operationalization strategy to measure the degree of democracy in the Argentine provinces. Starting with a mainstream and “thick” definition of regime type, I assess each of its aspects using a subjective or perception-based approach that taps the knowledge of experts on the politics of each province. I present and justify the methodological design of the resulting Survey of Experts on Provincial Politics (SEPP) and conduct a preliminary analysis of its results. Some aspects of the provincial regimes appear to be clearly democratic, while others are mixed or even leaning towards authoritarianism. Moreover, some show little interprovincial variance, while others vary considerably from province to province. An analysis of the central tendency and dispersion of the survey items allows for a general description of the Argentine provincial regimes. Inclusion is the most democratic dimension, while the effectiveness of institutional constraints on the power of the Executive is the most deficient. Electoral contestation is generally free of traditional forms of fraud, but incumbents often command far more campaign resources and media attention than do their challengers. Physical repression is rare, but opponents in some provinces face subtler forms of punishment. While the survey does not uncover any clear cases of subnational authoritarianism, stricto sensu, provincial regimes do vary significantly from basically democratic to clearly hybrid.
Political Geography:
Argentina

20898. The Politics of Subnational Undemocratic Regime Reproduction in Argentina and 60

Author:
Agustina Giraudy
Publication Date:
01-2010
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
This article studies the continued existence of subnational undemocratic regimes in Argentina and Mexico, two countries that have recently experienced national democratization. The first part of the article offers a conceptualization of subnational democracy and measures its territorial extension across all subnational units. The second part explores a common, albeit not systematically tested explanation about subnational undemocratic regime continuity, namely, that these regimes persist because they meet national incumbents' strategic political needs. This claim is tested using statistical analyses to contrast patterns of spending across undemocratic subnational units during the presidencies of Menem (1989-1999), De la Rúa (2000-2001), Duhalde (2002), and Kirchner (2003-2007) in Argentina, and Fox (2000-2006) in Mexico. Contradicting conventional wisdom, the results show that presidents only reproduce a handful of subnational undemocratic regimes, as not all of them can meet presidential needs. In addition, the results reveal that the strategic calculation of presidents regarding this reproduction is dictated by factors that have been largely overlooked by the literature.
Political Geography:
Argentina and Mexico

20899. Neo-Patrimonialism and Subnational Authoritarianism in Mexico. The Case of Oaxaca

Author:
Julián Durazo Herrmann
Publication Date:
01-2010
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
How do subnational authoritarian enclaves emerge (or survive) in a democratic transition at the federal level? How can they endure large-scale social protests, like the one that shook Oaxaca in 2006? While federal tolerance for subnational authoritarian practices is a necessary condition, it is insufficient in itself to explain why subnational political systems sustain and eventually reproduce authoritarian practices in the first place. In this article, therefore, I focus on the internal dimension of subnational authoritarianism. I argue that, because of its reliance on two distinct sources of legitimacy, Oaxaca's neo-patrimonial domination system was able to respond to the formal democratizing pressures emanating from the federal transition without losing its authoritarian nature. This process of hybridization transformed Oaxacan institutions, but left social structures and the political dynamics that emerge from them – the sources of subnational authoritarianism – almost intact. By exploring the evolution of neo-patrimonialism and hybridization in Oaxaca from a theoretical perspective, I address the issues of change and continuity in the emergence of subnational authoritarian enclaves, in Mexico and elsewhere.
Political Geography:
Mexico and Oaxaca

20900. No Country for Leftists? Clientelist Continuity and the 2006 Vote in the Brazilian Northeast

Author:
Alfred P. Montero
Publication Date:
01-2010
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
Building upon recent studies of the electoral effects of social policy and President Lula da Silva's coattails in the 2006 Brazilian elections, this article explains the performance of leftist and conservative candidates in elections for governor during that cycle in the Northeast region. The study assesses three systemic factors: the conditional cash transfer program, Bolsa Família, economic growth, and Lula's coattails on support for right-wing incumbents and left-wing oppositions in the states of Bahia, Maranhão, and Ceará. Based on the analysis of an original municipal-level dataset and a survey of partisan elites, the findings underscore the importance of urban-based party building strategies across the three states and patterns of elite alliances specific to each state. Alliances made in the capitals coupled with divided conservative establishments, facilitated leftist victories in the examined states. At the same time, variations in alliance patterns and leftist party development across the three states reveal that conservative clientele networks remain vibrant bases of right-wing support, especially in the interior, and despite either social policy or Lula's coattails.
Political Geography:
Brazil