How does outward foreign direct investment contribute to economic development in less advanced home countries?

In view of the rapid increase of outward foreign direct investment (OFDI) from emerging economies in recent years, this study examines how OFDI supports economic development in the world’s less advanced home countries. Drawing on theories of FDI, available literature of relevance and some recent evidence from emerging economies, this study finds that the objective of multinational enterprises to pursue assets and advantages abroad through OFDI can yield financial, intangible capability and tangible capacity returns. In the right circumstances, these returns generate important macroeconomic gains, mitigate some of the typical problems of economic development and provide broader benefits to societies. Despite some limitations, OFDI complements, sometimes in distinct ways, the development benefits many countries already realise through trade, migration and inward FDI. Emerging economies are best placed to benefit from the returns generated by OFDI.     

Foreign direct investment‐facilitated development: the case of the natural gas industry of Trinidad and Tobago

Since the last decade, governments in less‐developed countries have increasingly viewed foreign direct investment (FDI) as a catalyst for economic growth and transformation. The early literature argues that FDI‐facilitated development occurs when a less‐developed country assimilates, adapts and diffuses the positive externalities arising from the interaction of the multinational enterprise's (MNE) ownership advantage with its locational attributes. This paper, however, posits that FDI‐facilitated development is not an effortless process. It occurs only when host developing‐country governments implement intervention policies that are aimed at increasing indigenous technological capabilities. These policies enhance the absorptive capacity of host countries, allowing them to capture the spillovers arising from the MNE activities. The paper explores this for Trinidad and Tobago, a recipient of substantial FDI inflows in its natural gas industry for the last decade. It shows that FDI‐facilitated development only occurs when governments in less‐developed countries pursue credible intervention policies.     

Industrial upgrading and development in Lesotho’s apparel industry: global value chains,foreign direct investment,and market diversification

Many low-income countries are integrated into apparel global value chains through foreign direct investment (FDI), including Lesotho, which has become the largest Sub-Saharan African apparel exporter to the US under the African Growth and Opportunity Act. More recently, South Africa has emerged as a new apparel export market in Lesotho. The two markets are supplied by different types of FDI firms – affiliates of Taiwanese transnational producers and South African manufacturers – which are part of different value chain variants. The paper assesses the implications for industrial upgrading and development of integration into these two value chain variants in Lesotho, drawing on firm-level and institutional interviews. We show that their different characteristics in terms of investors’ motivation, governance structure, end markets, firm set up and most importantly and causally, ownership and embeddedness have crucial impacts on functional, product and process upgrading, local linkages, and skill development.     

Physical infrastructure as a constraint on agricultural growth: The case of sub‐Saharan Africa

Abstract

The importance of agriculture in sub‐Saharan Africa, and the somewhat lagging development in other activities, suggests that particular significance attaches to the arrest of the drawn out crisis of agricultural production. Two opposing suggestions which are often made are that this is a matter either of price incentives, or of fundamental change designed to remove many infrastructural constraints and the lack of provision of other essential services. The issues are pursued, first, by an appraisal of the evidence relating to agricultural supply response. The long‐run response to price incentives is probably rather low, but it is suggested that it is very often constrained by non‐price factors. The paper then assesses the importance of infrastructural constraints, particularly in transport and communications. It is argued that the choices between improving price incentives and the need for infrastructure and other provision are not absolute since complementarities are important. Both, in effect, can also compete for public funds. The dilemma is particularly acute in sub‐Saharan Africa since low population densities and long distances result in the costs of transport and other essential services being comparatively high. It is therefore all the more necessary to seek cost‐effective ways of improving provision in order to maximize the impact on farm output. The paper suggests a number of ways in which this can be done, notably by better utilization of existing infrastructure.     

Constructing landscapes of value: Capitalist investment for the acquisition of marginal or unused land—The case of Tanzania

The current global wave of land acquisition – variously debated as land grabbing or investment in land – is promoted by the World Bank and the FAO as creating win–win-situations for local populations and investors alike. Common policy recommendations suggest expanding the production of export crops, by making use of marginal or unused land. Considerable potentials for such an expansion are assumed. Taking Tanzania as a case study, the evidence for such types of land is assessed by using a broad range of statistics. We will argue firstly, that the terms marginal and unused land serve as a manipulative terminology for the benefit of attempts to commercially valorize and commodify African landscapes, from biofuel to large-scale food production and tourism. However, they relate to different rationalities of domination. Unused land refers to a state-bureaucratic narrative, which excludes user groups deemed irrelevant for national development, while marginal land refers to a capitalist-economic narrative that excludes what is not profitable. Secondly, the terms are analyzed as categories central for state simplification of social relations attached to land. Modelling of these land use categories based on remote sensing is an attempt to compensate weak state capacities to enhance the legibility of the landscape by constructing it as a landscape of commercial value.     

The transformation of the Indian agricultural input industry: has it increased agricultural R&D?

Indian agricultural input industries have gone through a major transformation in the last 40 years. State owned firms grew during the Green Revolution and then stagnated or declined. Indian corporations that were protected from foreign competition are now exporters of agricultural tractors and pesticides. Foreign multinational corporations are rapidly increasing their role in the seed, pesticide, and tractor industries. Entry by large Indian firms and multinationals has increased competition in the input industries. Private agribusiness R&D in India grew from $23 million in 1985 to $250 million in 2009 in 2005 US dollars. This is the same time period as a transformation in the agricultural input industry, rapid growth in demand for agricultural inputs, breakthroughs in information technology and biotechnology, and changes in intellectual property rights. An econometric model was used to test whether the transformation of agricultural input industry was a major factor in the growth of R&D expenditure or not. This article analyzes a unique, firm level sales and R&D data set from the seed, pesticide, tractor, and fertilizer industries in 2000–2009. The estimated model indicates that agribusiness firms' R&D expenditures from 2000 to 2009 were positively related to variables associated with industry transformation such as firm size, ownership by multinationals, and declining industry concentration. The model also indicates that strengthening patent policy as well as growth in the size of research‐intensive industries like the seed industry contributed to the growth of agribusiness R&D in India.     

Vacant industrial premises and local development: A survey,analysis and policy assessment of the problem in Stoke‐on‐Trent

Summary

This paper presents the results of some survey work carried out in 1985 and in late 1987 on the subject of vacant industrial premises (VIPs) in the Stoke‐on‐Trent area. The issue of VIPs is briefly discussed at the outset and attention is drawn to the virtual information void that exists as regards the topic. The main core of the paper discusses the results of a survey of VIPs conducted in Stoke‐on‐Trent in 1985 and 1987. A typology of VIPs is suggested and, using a components of change approach, trends in the mid‐1980s are analysed. Detailed consideration is made of individual components ‐ including premises persistently vacant and reoccupations ‐ and several themes are developed. These include questions of the local distribution of VIPs components; the problems of returning premises to use; and the policy issues involved. The survey results reveal that over 3 million ft² of vacant industrial floorspace was available in early 1985 but that the figure had fallen to less than 2 million ft² by late 1987.     

Farm‐level impacts of prolonged drought: is a multiyear event more than the sum of its parts?

A multiyear discrete stochastic programming model with uncertain water supplies and inter-year crop dynamics is developed to determine: (i) whether a multiyear drought's impact can be more than the sum of its parts, and (ii) whether optimal response to 1 year of drought can increase a producer's vulnerability in subsequent years of drought. A farm system that has inter-year crop dynamics, but lacks inter-annual water storage capabilities, is used as a case study to demonstrate that dynamics unrelated to large reservoirs or groundwater can necessitate a multiyear model to estimate drought's impact. Results demonstrate the importance of analysing individual years of drought in the context of previous and future years of drought.     

The value of education in small‐scale agriculture: Some evidence from Ogun State,Nigeria

Abstract

This paper examines the value of education in Ogun State agriculture using the production function framework. The results indicate that education contributes substantially to agricultural production in the State. The allocative effect of increased education was found to be more important than the worker effect while the input‐selection component of the allocative effect was more important than the input‐allocation component. Thus involvement in farmers’ education or a successful policy at luring educated persons into agriculture can be expected to bring about increased agricultural production in the State and, by extension, the entire country.     

The informational dimension of real estate development: A case of a “positive non-interventionist” application of the Coase Theorem

Informed by Coase's (1988) idea that state rules can enlarge a market, Rosa's (2006) idea of information as a private good usable as memes, and Yu's (1981) economics of patent pooling, Schuster's (2005) proposition that government can collect and distribute information as an active tool to influence actors, this paper advances the viewpoint that real estate development forms sign structures for adding information that enhances the values of a site under strategically selected property names. The ideal case of Hong Kong's planning and development by contract is used and compared to the practice in Mainland China to demonstrate these ideas with special reference to its open land registration and information systems, which sell important information memes and the names of properties that can be protected by trademark law.     

Marketing Dynamics and Management Excellence: The Sources of Successful Internationalization of a Food Processing Company from a Transition Economy (Case: MASPEX—Poland)

The article presents a case story of the fall and rise of the food industry in Poland's transition economy, illustrated with the example of one of its most successful companies. The author distinguishes 3 stages of the economic transition of Poland: Stage 1, in which the Polish food processing industry collapsed, faced with fierce foreign competition after the implementation of a strategy of liberalization and privatization; Stage 2 (since the late 1990s), when young, dynamic, and relatively well-educated Polish entrepreneurs and managers not only started to regain the local market but also began international expansion, intensifying exports, primarily to EU markets; Stage 3, during which the internationalization took the form of foreign direct investment outward into the former neighboring socialist/communist countries.

The MASPEX Group provides an excellent example of successful revival and expansion achieved thanks to the company's dynamic marketing strategy, executed by a young, dynamic, and highly professional management team.     

“The man,the administration and the counter-discourse”: An analysis of the sudden turn in Dutch nature conservation policy

The Netherlands were at the forefront of European nature conservation policy until recently. For years, a stable ‘social contract’ around Dutch nature conservation existed. To the surprise of many, this stability suddenly disappeared and Dutch nature policy has taken a dramatic shift with changing discourses on nature conservation, the halting of implementation of several key-policies and budget cuts up to 70%. This paper engages with discursive-institutionalism to understand such abrupt institutional changes through emerging ideas and discourses that reshape and undermine existing institutional arrangements. We show how the institutionalization of policy not only engendered but also restricted the impact of critical discourses in the 1990s and 2000s. However, critical discourses eventually played an important role in the sudden turn in nature conservation policy. The rise of a general populist discourse and the economic crisis contributed to the credibility of critical discourses and their translation into popular frames and storylines. Authoritative actors such as a new State Secretary opened up popular media for the critical discourses and contributed to their resonance among larger audiences. As such, the man and his new administration successfully used already existing counter-discourses to de-legitimise nature policy and break down important institutional arrangements at a pace unseen in Dutch politics. Adding a discursive element to institutionalism provides for analytical tools to understand change from both external as well as internal forces. In turn, enriching discourse theory with insights from neo-institutionalism helps to evaluate which ideas and discourses become materialized in policy and practice.     

Interactions between Brands and CO Labels: The Case of “Bavarian Beer” and “Munich Beer” – Application of a Conditional Logit Model

ABSTRACT

For the past four decades ‘country-of-origin’ (CO) research has been discussing the value of designations such as ‘Made in Germany’ or ‘Made in USA.’ However, published studies have not usually investigated brand-specific effects of ‘country-of-origin’ (CO labels). This article employs a choice experiment in order to analyse the impact of a CO label applied to branded food products. For this purpose, a nationwide survey was carried out in Germany to measure the effect of the geographical indications ‘Bavarian beer’ and ‘Munich Beer’ on brand choice. The results indicate that weak unknown brands can benefit especially from the labeling of geographical indications.     

Heterogeneity in male and female farmers’ preference for a profit-enhancing and labor-saving technology: The case of Direct-Seeded Rice (DSR) in India

Labor-saving and income-increasing technologies may affect women farmers differently from men. However, very few studies explicitly account for women's preferences for new technologies. We carried out a discrete choice experiment with 337 female and 329 male farmers in Maharashtra, India, to measure their willingness to pay (WTP) for direct-seeded rice (DSR) with drum seeder and to understand the gender differences in marginal valuations of key attributes. We used the Women's Empowerment in Agriculture Index (WEAI) to collect self-reported data on the role and say of women in different domains of decision making. The respective gender roles of women and men in the family and on the farm are aligned with their preferences. Men have a greater say over how the family spends the cash. Accordingly, men tend to have a higher WTP for attributes that increase income (increase in yield) or reduce cash costs (reduction in seed rate). Women contribute a large share of the labor for transplanting rice, much of which is unpaid work on family farms. Women, therefore, seem to value labor saving more. Women in our sample were more interested in the new technology and had a higher WTP for it.