Business groups,foreign direct investment,and capital goods trade: The import behavior of Japanese affiliates

We examine the impact of buyer–supplier relationships within business groups on capital goods trade by taking into account potential simultaneous effects of business group ties on foreign direct investment. We posit that (1) foreign affiliates of business group firms have a greater propensity to import capital goods from the home country, increasing home country exports; (2) if the establishment of overseas affiliates by business group firms attracts foreign direct investment by their capital goods suppliers, business group ties are localized and the ‘trade creating’ impact of business group ties may disappear or even be reversed. Empirical analysis of capital goods imports by 1790 manufacturing affiliates operated abroad by Japanese multinational firms, combined with information on linkages with machinery suppliers within horizontal and vertical business groups, provides broad support for these predictions. Our findings suggest that it may be incorrect to infer from the absence of a simple relationship between business group ties and trade that such ties are unimportant; instead, intra-group ties may be replicated abroad through foreign direct investment.     

Outward investment, employment, and wages in Swedish multinationals

Examining detailed data for the home-country operations in Swedishmultinationals during the period 1986-94, this paper shows thatthere are signs of very notable structural changes in the home-countryoperations of these corporations. It also shows that the effectsvary according to economic conditions in the home country. Inthe 1980s, when the Swedish economy was characterized by hightaxes, high inflation rates, and a tight labour market, relativelyattractive jobs within the multinational corporations (MNCs)were relocated from Swedish plants to foreign affiliates. Inthe 1990s, by contrast, when the financial crisis had necessitateda host of micro- and macroeconomic reforms, the location decisionof the MNCs were more favourable for the Swedish economy. Newjobs created by the multinationals were found in activitieswith high productivity and wages. Thus, home-country effectsof foreign direct investment seem, to a large extent, to bedetermined by the home countries' economic environment.     

外商直接投资与东道国经济增长——基于模仿与创新的研究

本文分析外商直接投资对东道国经济增长及其方式的影响.通过赋予这些国家的企业选择模仿或者创新的自由,打破传统技术扩散模型中技术落后国只能进行被动模仿的假设.研究发现:外商直接投资能够从技术扩散效应、资本效应以及资源竞争效应3个方面影响东道国的经济增长速度,通常情况下,积极的技术扩散效应和资本效应超过资源竞争效应,使外商直...     

The impact of disinvestment and the debt crisis on the South African economy

The paper considers the economic implications of disinvestment and the debt crisis for the South African economy with the aid of some historical analysis of foreign capital inflows and growth. It considers the changes that have occurred in the structure of foreign liabilities over the last twenty years and it examines the quantitative and qualitative roles of private investment and non‐direct investment over this period. The debt issue is examined within the framework of disinvestment, and the conclusion reached is that the economic problems consequent to a withdrawal of foreign loans pose a far greater threat to the South African economy than the loss of foreign direct investment. We assume that disinvestment is not accompanied by any official trade embargo, and the controversy surrounding the relationship between economic growth and social and political change in South Africa is ignored.     

Foreign Investment in East Asia: A Survey

This article updates the May 1989 literature survey on foreign direct investment (FDI) in the East Asian region published in this journal. Following an overview of trends of FDI in the 1990s, it focuses on three key issues: the impact of the recent Asian economic crisis on FDI inflow relative to other forms of capital inflows; the link between FDI and trade; and technology transfer and adaptation. It is too early to discern the implications of the crisis for host-country policies and investment decisions of multinational corporations, but the indications are that FDI will continue to play a pivotal role in economic transformation, and in regional and global economic integration.     

Localization of foreign multinational companies in Korea

In response to the 1997 Asian financial crisis that devastated the Korean economy, the government performed promotional efforts, comprehensive structural reform, and implemented policies to create a favorable environment for foreign direct investment (FDI). While the Korean government announced deregulation plans to support foreign companies, the public also became more aware of the need for foreign capital to overcome the crisis and revive the economy. The change of atmosphere and the perception on the need to induce the inflow of foreign capital provided the basis for this study. In addition, the crucial role of foreign multinational companies and their efforts to achieve market recognition in a more comprehensive way have provoked this study on the localization of foreign multinational companies in Korea. Investment purposes, entry methods, and the degree of competition by multinational companies in Korea were the variables that lead these companies to respond to localization.     

次贷危机背景下我国产业空心化问题研究

产业空心化是指以制造业为中心的物质生产和资本,大量、迅速地转移到国外,使物质生产在国民经济中的地位明显下降,造成国内物质生产与非物质生产之间的比例关系严重失衡的经济现象。本文主要从出口下降、成本上升、对外直接投资增加、国际游资涌入、实体信心缺失等方面分析了次贷危机背景下我国产业空心化出现的原因,指出了次贷危机加速了我国产业空心,同时,提出通过兼顾金融与实体领域监管与改革,传播正确价值观等应对策略,减缓甚至阻断我国产业空心化进程。     

行业增长性、技术投资博弈与跨国公司直接投资技术外溢

跨国公司直接投资对发展中东道国技术发展的影响如何?大多数研究停留在总体正负外溢效应的争论上,很少有学者关注东道国的行业增长性和企业技术投资对跨国公司直接投资技术外溢的影响。本文引入行业增长性,拓展Wang与Blomstrom的国际技术转移模型,构建了跨国公司技术转移与东道国企业技术学习的博弈框架,重点研究行业增长性对企业技术行为与技术外溢的影响,更全面地探讨跨国公司直接投资技术外溢机制。     

Financial constraints and foreign direct investment: firm-level evidence

Low productivity is an important barrier to the cross-border expansion of firms. But firms may also need external finance to shoulder the costs of entering foreign markets. We develop a model of multinational firms facing real and financial barriers to foreign direct investment (FDI), and we analyze their impact on the FDI decision. Theoretically, we show that financial constraints can affect highly productive firms more than firms with low productivity because the former are more likely to expand abroad. We provide empirical evidence based on a detailed dataset of German domestic and multinational firms which contains information on parent-level financial constraints as well as on the location the foreign affiliates. We find that financial factors constrain firms’ foreign investment decisions, an effect felt in particular by firms most likely to consider investing abroad. The locational information in our dataset allows exploiting cross-country differences in contract enforcement. Consistent with theory, we find that poor contract enforcement in the host country has a negative impact on FDI decisions.     

东道国有效利用外国直接投资的新途径--促进跨国企业与东道国企业的联系

本文分析了通过促进跨国企业与东道国企业的联系,包括前向、后向和水平联系,进入一个前向———后向联系的累积因果循环,可以使东道国的本地企业和相关行业得到发展,甚至在某些领域击败跨国企业,揭示了一条东道国有效利用外国直接投资的新途径。但由于市场的不完全性,东道国政府应有所作为,促进跨国企业与本地企业的联系。     

绿地投资还是跨国并购:中国企业OFDI模式选择研究

对外直接投资模式选择是企业国际化战略中的关键决策。文章运用中国工业企业数据库和商务部境外投资企业名录匹配基础上的补充数据，实证考察企业在绿地投资和跨国并购之间的对外投资模式选择。研究表明：随着企业生产率、资本密集度，以及东道国经济发展水平、关税水平和制度环境的提升，企业进行跨国并购的概率提高；随着企业规模、研发投入，以及东道国市场规模、文化距离的增大，企业选择绿地投资的概率提高；相比来看，非国有企业、资本密集型企业和具有国际化经验的企业对各类影响因素更加敏感，在OFDI模式选择中受到的影响程度更大。     

Affiliates and parent employment through foreign direct investment: a study case of substitutability or complementarity

How does outward foreign direct investment (FDI) affect employment of multinationals in the home country? Does the impact of outward investment differ among manufacturing and service sectors? Using data on Italian MNEs, this paper examines the impact of Italian outward FDI on local employment between 1998 and 2006. In particular, we investigate the relationship existing between employment in the parent company and employment in foreign affiliates by distinguishing according to host-country location and sector of activity. The results suggest that the effects of Italian outward FDI on domestic employment differ according to the sector and the country of destination. In the manufacturing sector, a weak but significant relationship of labour substitutability is found for Italian MNEs producing low-technology products in foreign affiliates localized in high-wage countries. On the other hand, a significant North–south complementarity relationship in labour demands appears in the High and Medium-high- technology sectors. In the service sector, we find strong complementarity between employment in the parent firm and employment in foreign affiliates: in particular, this regards Italian MNEs producing knowledge-intensive services both in Western affiliates and CEEC locations. These results are robust when we control for endogeneity of output and parent wages.     

Firm Productivity and Foreign Direct Investment into Non‐core Activities*

As foreign direct investment (FDI) often originates from multinational enterprises (MNEs) with non‐core activities and not single‐product firms, as MNE theory typically suggests, we hypothesize that such firms are more productive than MNEs without non‐core activities as well as non‐MNE firms. We test this hypothesis using Kolmogorov–Smirnov stochastic dominance Tests and Japanese firm‐level productivity and FDI data for the period 1985–2001. We find that both manufacturing and service multinational firms with non‐core foreign investments stochastically dominate firms without non‐core activities. We also find cost‐complementarities between certain core and non‐core FDI activities that span both manufacturing and service affiliates.     

信仰的力量:东道国宗教信仰会影响中国OFDI吗？

基于2003-2015年中国对外直接投资流量数据及ARDA宗教数据，构造引力模型实证考察东道国宗教信仰多样性和东道国与中国宗教信仰相似性对中国OFDI的影响。分析结果表明，东道国宗教信仰多样性对中国OFDI有促进效应，但东道国与中国宗教信仰相似性对OFDI没有显著正影响。使用1900年宗教信仰结构匹配的宗教变量及1500年东道国与中国的遗传距离作为工具变量，纠正模型中可能存在的内生性问题后，这一结论依然存在。同时，用控制传导变量及剔除金融危机影响的方法进行稳健性测试的结果也支持这一结论。最后，在进一步的作用机制检验中初步发现，宗教信仰会通过选择偏好效应、信任间性效应和制度介导效应作用于对外直接投资。     

An Analysis of Tax Incentives to Attract FDI in Bangladesh： An Empirical Study

The purpose of the study is to understand whether it is still viable to use tax incentives to attract foreign direct investment （FDI） considering their effectiveness and costs to the country, and if not, what should be the alternative, effective, and viable means of promoting the vital FDI inflow. The study investigated various incentives provided by BOI, and other relevant sources available as secondary sources. However, the multinational enterprises （MNEs） are not attracting for investment in Bangladesh always with tax incentives and there are alternative means of attracting FDI such as direct financial grants, subsidies loan guarantees, etc. This paper focuses on tax incentives and the debate against the effectiveness and efficiency in attracting FDI.     

Foreign Investment,Divestment and Relocation by Japanese Electronics Firms in East Asia*

Although foreign divestment and international relocation by multinational firms carry important economic implications for the industrialization of East Asian countries, there has been little empirical research on these issues. In this paper we analyze the magnitude and pattern of foreign divestment and relocation by Japanese electronics firms in nine East Asian countries during 1995–2003. The average annual divestment rate of electronics manufacturing affiliates is 3 percent, but divestment patterns diverge strongly across countries. Divestments are much more frequent in higher labor cost countries and in approximately one‐third of cases are accompanied by relocations to lower wage countries, particularly to China. Evidence is found for rivalry between China and ASEAN countries in attracting foreign direct investment, but the growing attractiveness of China has not been accompanied by a reduction in employment in Japanese affiliates in ASEAN countries (with the exception of Singapore). Divestments and relocations are related to Japanese firms’ strategy to reconfigure their Asian production networks in response to changing competitiveness, regional integration, and changes in local investment environments.     

Sino-US trade balance from national income perspective and global income chains

ABSTRACT

Trade volume biases trade benefits under the background of economic globalization. Employing the input-output technique, important progress has been made in research on trade in value-added. It is noteworthy that capital globalization is one of the important manifestations of economic globalization. Owing to the ever-increasing transnational flow of capital, mainly by foreign direct investment (FDI), production of exports shows great dependence on foreign capital. A large part of value-added in exports are obtained by foreign factors owners, since foreign-invested enterprises account for a large proportion in host country’s total exports, which is foreign income. The ultimate goal of trade is to boost national income. We propose to study trade benefits and trade balance from national income perspective, and further introduce the concept of global income chains to reveal economic benefits distribution within international specialization.     

美国金融危机对我国利用外资的影响

利用外资在中国改革开放30年来的经济快速发展中发挥了重要作用,进入08年以后,由美国次贷危机引发的金融危机席卷全球各国的经济发展均受到不同程度的影响,中国也不例外。中国利用外资的形势由此变得严峻起来,但由于中国相对独立的经济体系,中国在此次金融危机中所受影响较小,中国应抓住机遇,积极调整外贸出口战略优化投资环境,调整产业结构,完善利用外资的法律法规,努力提高利用外资的质量,为经济的复苏和崛起打下坚实的基础。     

Vertical Spillover Effects of Multinationals on Chinese Domestic Firms via Supplier-Customer Relationships

Foreign direct investment （FDI） can benefit domestic firms in the host country. Using firm- level data for China, we find statistically positive vertical spillover effects of multinational enterprises on the performance of domestic firms through backward and forward supplier- customer relationships. The spillover effects are mainly from large multinational enterprises and are greater for state-owned firms and in poor regions. Our results are robust for both parametric regression and nonparametric matching techniques. Our findings have strong policy implications： while regulations relating to building business relationships with domestic firms when seeking foreign direct investment should be established, such policies should be aimed at private firms, big multinationals and less developed regions.     

A macroeconomic model of direct investment in foreign affiliates of Japanese firms

This paper analyses the operations of the Japanese multinational corporations in the world economy by constructing and estimating a Japanese foreign direct investment system. This system models the determinants of manufacturing foreign direct investment (FDI), the trade between Japan and her overseas affiliates as well as the sales of the manufacturing subsidiaries and those of the trading subsidiaries. The error-correction modelling techniques are adopted for estimation in order to capture both the short- and long-run adjustment processes. Finally, simulations are conducted on the model to analyse the effects of changes in the world economy.