The Effect of Corruption on Japanese Foreign Direct Investment

In an effort to reduce risk and uncertainty, we hypothesize that investors avoid countries where high corruption exists. We investigate this issue by examining the relationship of levels of perceived corruption on Japanese Foreign Direct Investment (FDI) in both industrialized and emerging economies. The analysis presented utilizes a sample of 29,546 investments in 59 countries. Results suggest that in emerging nations, where comprehensive legal and regulatory frameworks do not exist to effectively curtail fraudulent activity, corruption serves to reduce FDI. Managers need to consider the level of perceived corruption in their assessment of any market prior to potential investment.     

Foreign Direct Investment Motives and Marketing Strategies in Central and Eastern Europe

Summary

Foreign direct investment (FDI) inflows are of crucial importance for the process of reintegration of Central and Eastern Europe (CEE) in the global marketplace. This paper explores the motives of foreign investors, host governments, and host companies in the FDI process taking place in CEE. The degree to which the motives of the three parties have been achieved is evaluated. The motives of foreign investors, host governments, and host companies are related to the strategic priorities of the FDI companies. The way in which these priorities have been realized is discussed. Recommendations for foreign investors' behavior in the CEE context are presented at the end of the article. The research data come from four countries: Bulgaria, Hungary, Poland, and Slovenia.     

Relationship-Oriented Cultures, Corruption, and International Marketing Success

This study explores the general problems associated with marketing across international markets and focuses specifically on the role of corruption in deterring international marketing success. The authors do this by introducing a broader conceptualization of corruption. The dimensions of corruption and their importance in explaining the exporters’ successes in international markets are developed empirically. Partial Least Squares formative indicators are used in a comprehensive model including consumer resources (wealth and information resources), physical distance (kilometers and time zones), and cultural distance (linguistic and values differences) as alternative explanatory variables. Finally, differences in the model’s performance across data from three exporting countries (France, Japan, and the US) are delineated and discussed. For example, the successes of French and Japanese exporters in international markets are in part determined by the levels of corruption in target countries. Alternatively, corruption in target countries does not appear to affect the successes of American exporters in global markets. The conceptualization of corruption in this study extends the more narrow view of corruption solely as bribery.     

The Effect of Political Events on Foreign Direct Investment in Marketing

While numerous studies have been conducted on environmental factors in international marketing, few have dealt directly with the effect of political events on foreign direct investment in marketing (FDIM). This paper examines the relationship between political events and FDIM by a pooled time-series (21 Years) and cross-sectional (26 countries) model. The results of this study indicate that both inter-nation and intra-nation conflictive and cooperative political events affect FDIM in a negative and positive way. The study also found a difference in the extent to which the political events affect FDIM in developed countries and in less developed countries.     

Ireland's Foreign Direct Investment Competitive Advantage and Japanese Outward Foreign Direct Investment

This article addresses Ireland's record in attracting foreign direct investment (FDI). FDI has been identified as one of the key factors that has spurred the growth of the Celtic Tiger. An adaptation of Porter's Diamond is offered to explain the determinants of Ireland's competitive advantage in attracting FDI. The overall trends in FDI inflows to Ireland are considered. The study then focuses on Japanese FDI into Europe and Ireland in particular. The pattern of Japanese FDI flows into Ireland is analysed in the context of Ireland's determinants of FDI competitive advantage. Future considerations around Ireland's model of competitive advantage are addressed.     

Foreign Direct Investment,Regulations and Growth

The paper explores the linkage between income growth rates and foreign direct investment (FDI) inflows. So far the evidence is rather mixed, as no robust relationship between FDI and income growth has been established. We argue that countries need a sound business environment in the form of good government regulations to be able to benefit from FDI. Using a comprehensive data set for regulations, we test this hypothesis and find evidence that excessive regulations restrict growth through FDI only in the most regulated economies. This result is robust to different specifications of the econometric model.     

Foreign Direct Investment and Economic Growth in EP and IS Countries: The Role of Corruption

Corruption is understood as an act in which the power of public office is used for personal gain in a manner that contravenes the rules established by the governing structures of a society. This study attempts to offer an extension to the empirical model employed by Balasubramanyam et al. (1996 ) by analysing how FDI determines economic growth within the new growth theory framework when the degree of corruption is considered. Thus, the study seeks to examine the way in which corruption can have an impact on the economic growth of developing countries whose trade strategies differ (either IS and EP). It suggests that further insight can be gained by considering how corruption might interact with the trade policy in affecting economic growth. This is examined using a fixed‐effects, simultaneous equation model for 17 countries over the period 1994–2004. The results show that the level of corruption strongly and negatively influences foreign direct investment in both IS and EP countries. However, when the corruption index is interacted with domestic investment, the influence on foreign direct investment is positive and significant for IS countries only. The most interesting outcome of the study is the effect of the interaction term between foreign direct investment and the corruption perception index on economic growth, which is found to be greater in magnitude for the EP countries than for the IS countries.     

外资并购:国际直接投资的双刃剑

本文认为,外资并购已经成为国际直接投资的一种主要方式.近年来我国外资并购呈逐年上升态势,在给我国带来先进管理经验和技术的同时,也出现了很多问题,对我国经济产生了负面影响.如外资并购容易形成垄断和控制,大幅度裁员影响社会稳定,相关法规建设严重滞后且缺乏可操作性,国有资产流失严重,对外资进入具体行业的程度规定还不够明确,在反垄断审查中缺乏权威的数据支持等.文章提出,我国政府应重新架构相关的法律法规体系,明确外资并购可以进入行业或领域的具体程度,完善资本市场和产权交易市场,建立并购经济信息网络、分析体系及外资并购国有企业的监管协调机制,注意运用我国市场潜在的优势,尽量在并购中获得较高比例的控股权,进一步明确政策导向,吸引外资并购西部国有企业,同时,鼓励我国企业"走出去",到国外进行投资和并购.     

Foreign Direct Investment in Hungary

Abstract

When in 1989 the markets in Central and Eastern Europe opened, western firms were quick to move in. Hungary treated foreign firms equal to domestic ones in the privatization process. It attracted most foreign direct investment in the region. Now, other countries are likely to follow the Hungarian path and allow foreign firms to take over domestic firms. This contribution discusses the experience of six Dutch multinational firms in Hungary and discusses whether these can be useful for expansion into other countries in the region. The results indicate that firms easily underestimate the cost of reconstructing acquired enterprises and that building a market position is more expensive than anticipated.     

Foreign Direct Investment in China

Summary

China has attracted the second largest amount of foreign direct investment in the world each year since 1993. Hundreds of thousands of foreign-invested enterprises are in operation in China. However, what drive the success or cause the failure of foreign investments is still not well understood. This paper critically examines one success factor, i.e., the importance of timing of marketing entry into China. It begins with a brief review of the literature on first-mover advantages and the recent empirical research. It then attempts to theorize on why timing of market entry matters in the context of foreign direct investment. Apart from drawing upon the four recent studies in this area, this paper focuses on the auto industry in China and the case of Volkswagen to illustrate the importance of early entry into an overseas market. It calls for foreign investors to seize the first-wave opportunities when the door is opened a certain sector. It pays in the long run both in terms of the market share position and profitability.     

外商直接投资、对外直接投资与国际收支——基于国际收支平衡的我国对外直接投资

在我国,引进外商直接投资和对外直接投资之间存在着严重的不对称性。我国国际收支中投资收益逆差抵消了大量的贸易顺差,在未来贸易顺差和外资流入减少的情况下,这将会导致中国国际收支的恶化。因此,需要大力推进我国的对外直接投资以谋求国际收支平衡。     

Foreign Direct Investment,Exports and Imports in Mexico

This paper analyses the liberalisation of foreign direct investment (FDI) in Mexico since the late 1980s, and its relationships with exports and imports. Such a process has eased the access of multinational corporations (MNCs) to the country, which has promoted exports. However, it has also resulted in a higher import content and the displacement of local firms, which has limited Mexico's economic development through the balance of payments constraint. The analysis is supported by the existence of linkages – bidirectional Granger causality – between exports, imports and FDI.     

Foreign Direct Investment,Competition and Industry Performance

This paper investigates the productivity effects of inward and outward foreign direct investment using industry‐ and country‐level data for 17 OECD countries over the period 1973 to 2001. Controlling for national and international knowledge spillovers we argue that the effects of FDI work through direct compositional effects as well as changing competition in the host country. Our results show that there are, on average, productivity benefits from inward FDI, although we can identify a number of countries which, on aggregate, do not appear to benefit in terms of productivity. On the other hand, a country's stock of outward FDI is, on average, negatively related to productivity. However, again there is substantial heterogeneity in the effect across OECD countries.     

Openness to Foreign Direct Investment in Services: An International Comparative Analysis

This paper quantifies and analyses the extent of restrictions on inward foreign direct investment (FDI) in the service sector in developed and developing countries. Services account for an increasing share of global FDI. Recognition of the economic benefits of FDI clashes with nationalistic economic, political and national security concerns about foreign takeover of ‘strategic’ sectors, such as telecommunications, finance and transport. Consequently, almost all countries impose restrictions on FDI in services. Several different types of restrictions are considered: limitations on foreign ownership, screening or notification procedures, management restrictions and operational restrictions. These restrictions on FDI are computed at the industry level and then aggregated into a single measure for the service sector as a whole for 23 developed and 50 developing countries. Notwithstanding the worldwide trend towards liberalisation of restrictions, there remain substantial disparities between regions and individual countries in the severity of restrictions on inward FDI in services. The lowest restriction scores are in Europe and Latin America, whereas East Asia, South Asia and the Middle East have the highest levels of restrictions. The evolution over time of FDI restrictions is also presented for developed countries over the period 1981–2005, showing liberalisation in all countries, especially since the early 1990s, although to varying extents across countries. The severity of restrictions also differs considerably by sector, with electricity, telecommunications, transport and finance most restricted. The paper also finds a strong negative correlation of restrictiveness with inward stocks of FDI in services, suggesting that restrictions impede FDI.     

外国直接投资与我国对外贸易失衡

我国与美国、欧盟的贸易顺差增大,外汇储备激增,原因错综复杂,其中,在我国改革开放和特殊的工业化进程中,经济全球化和国际分工加速发展,世界产业结构大调整,外国直接投资持续增加才是根本原因。由于外国直接投资对我国贸易顺差存在着两种效应:直接效应和间接影响,即外国直接投资对我国产生明显的贸易创造效应,同时又具有一定的贸易替代效应,间接增加了贸易顺差,从而加剧了我国的贸易失衡。本文运用协整检验,建立误差修正模型,验证了外国直接投资与我国贸易顺差存在长期均衡关系,即正相关关系。只有从生产领域和外商投资的角度入手才能从根本上缓解贸易顺差的扩大。     

我国利用外国直接投资存在的问题及建议

改革开放以来,我国利用外资规模不断扩大,外资的利用促进了我国经济的发展。但是,我国在利用外资过程中存在的问题也较多：如外资来源地较集中;外资的规模小、技术含量低;外资的投向结构不合理;外资在一些行业形成了垄断,冲击了民族工业;外商投资的法律体系不完善。所以要采取对策,扩大利用外资渠道;进行政策调整,优化外资投向结构;采取适当手段保护民族工业;完善外商投资法律体系,改善投资环境。     

论国际贸易与国际直接投资关系的发展与变迁

国际贸易和国际直接投资是跨国界配置资源的两种方式 ,都能有力地推动一国经济增长 ,通过对相关理论和各国实践进行考察 ,结合当今跨国公司的活动得出结论 :国际贸易和国际直接投资之间的关系历经了以替代、互补为主的阶段 ,目前表现为在跨国公司全球战略控制下的并重、互动的关系。同时从两方面具体分析了这种互动关系 ,并在此基础上指出国家相关政策应搭配协调 ,以更好地为其经济发展服务。     

Foreign Direct Investment in Mexico and Chile

Summary

Increased flows of Foreign Direct Investment (FDI) are a major source of capital for Latin American countries. This paper analyzes the experiences with attracting and the effects of FDI for two nations-Chile and Mexico. Clearly attempts to attract FDI through relaxed restrictions on profit remittances and other reforms have had an impact. However, while Mexico has succeeded in attracting investment to high productivity “greenfield” industries, Chile has seen most FDI go towards low productivity sectors such as mining and agriculture.     

Foreign Direct Investment in Central America

Summary

Foreign Direct Investment has gone through three distinct phases in Central American history. First, it was mainly in the form of agricultural development during the agricultural export-led growth era. The import-substitution era saw manufacturing enter as well. The non-traditional export promotion strategy currently in place attracts firms seeking to use the region as a platform for exporting outside the region. Modern FDI generates greater linkages with the rest of the economy than in the past. However, remittance of profits is still large and problematic.