The Contribution of International Business to the Economic Development of Yunnan Province

Abstract

Yunnan province is the closest part of China to mainland Southeast Asia and represents an important commercial link between the two separate markets. Its capital, Kunming, is becoming linked to Bangkok and other cities through the provision of transportation infrastructure and trade is increasing. However, it is not clear whether the business conditions within Yunnan are yet appropriate for the kind of trade and investment that international businesspeople wish to transact there. Using a program of qualitative research featuring in-depth personal interviews, the authors investigate the actual business conditions in Kunming principally but also in the remainder of the province. They find that much economic development is taking place as a result of large-scale state activity that is able to take advantage of economies of scope and scale. Meanwhile, much international business is hampered by the weak nature of institutions supporting the business infrastructure and the nature of a number of informal and unofficial barriers to entry and development.