Publication date: 25 October 2017 Source: Author: Ivana Slavoljub Domazet, Darko Milivoj Marjanović The main aim of this work is to determine, on the basis of empirical research, whether and to what extent foreign direct investment has impact on the overall economic development of selected countries in the Western Balkans. Analyses made for the purpose of this paper were performed on the basis of available secondary data possessed by the World Bank for the period of 2000-2012. The (...) research methodology involved the use of the techniques of linear regression and correlation analysis. The first task was to determine whether there is an impact of foreign direct investment on the overall economic development of these countries. Where such influence occurred, it was necessary to define its level in comparison to the influence of other variables. The results of the analysis in this paper suggest that inflow of foreign direct investment does not affect to a significant extent the economic development of selected countries in the Western Balkans. (shrink)

While there had still been an increasing flow of foreign direct investment (FDI) into China during the 2002 downturn in FDI globally, such investments have historically been only sporadically successful. Much writing has detailed and discussed problems associated with China FDI but several costs remain dangerously overlooked. One such cost is that of micro-monitoring plants for work conditions and employee treatment in violation of local Chinese laws and possible home country ethics. Further, a more personal cost is (...) presented – the personal cost associated with maintaining an investment in a facility that violates standards of ethical employee treatment. Background information related to these issues is presented, along with a general overview of FDI in China. (shrink)

As foreign direct investment in the U.S. continues to become both more visible and controversial, the general public remains skeptical about the corporate citizenship of these foreign affiliates. Four dimensions of corporate citizenship — orientations, organizational stakeholders, issues, and decision-making autonomy — were used to compare the inclinations of foreign affiliates with the domestic firms operating in the U.S. chemical industry. The only significant differences between the U.S. sample and those firms headquartered in other countries-of-origin (...) were found in the area of corporate citizenship decision making autonomy. (shrink)

The authors analyze the impact of human rights conditions on foreign direct investment (FDI). Extant literature in this area raises conflicting expectations. Although the “conventional wisdom” posits that repression creates a stable, compliant, and relatively inexpensive host for FDI, there are contending arguments that the protection of human rights reduces risk and contributes toward economic efficiency and effectiveness. Moreover, the burgeoning “spotlight” regime may also punish firms who locate in repressive regimes. Conceptualizing FDI as a two-part process—the (...) initial decision to invest and the subsequent decision of investment amount—the authors assess human rights as a determinant of FDI. Using a two-stage model, they test their hypotheses across developing countries for the years 1980 to 2003. They find that human rights are a significant determinant of the amount of FDI inflows. (shrink)

This study aims to analyze the impact of Foreign Direct Investment, external debt and population growth on economic progress of Pakistan by using time series data from 1980 to 2014. It analyzes the correlation between Gross Domestic Product,FDI, external debt and population growth. Augmented Dickey Fuller test has been used to check stationarity in time series data. To evaluate the empirical results multiple regression method is used. GDP has been used as a dependent variable while FDI, external (...) debt and population as independent variables. Findings of this paper show the positive and significant impact of FDI, and population growth on GDP but external debt has negative impact on GDP. (shrink)

This paper examines the foreign direct investment decision from an ethical perspective, and considers the moral agency involved in such decisions, with emphasis upon the corporate decision-maker. Historical capital allocation models once regarded as both financially and ethically normative are shown to be deficient in today's environment. Work of modern western philososphical and theological ethicists is included in analyses of the applicability of selected ethical approaches or metaphors to multinational foreign direct investment decisions and (...) the corporate manager's role and responsibility as corporate decision-maker and moral agent. The ethical perspectives reviewed can serve as an aid to the individual manager's determination of what constitutes a responsible exercise of decision-making power. (shrink)

Based on 2010 to 2019 Chinese outward foreign direct investment panel data from 39 host countries, this paper studies the relationships between host country cultural characteristics and Chinese OFDI. The OLS regression results show that the cultural tolerance and trust in the host countries are significantly positively correlated with Chinese OFDI, which are robust according to the system GMM tests. Further analysis reveals that cultural tolerance is more positively related to Chinese OFDI in host countries with higher (...) legislation and economic freedom, while cultural trust is positively associated with Chinese OFDI in host countries with lower legislation and economic freedom. In addition, higher cultural tolerance and trust promote Chinese OFDI in countries with greater cultural distance. Unlike traditional studies based on cultural distance in international trade, using more representative cultural characteristics, this paper provides references to Chinese OFDI decision-making based on the root characteristics associated with heterogeneous cultural influences. (shrink)

We examine the relationship between Japanese foreign direct investment (FDI) and the national corporate responsibility (NCR) environment in host countries using corporate social responsibility and international business theories. Based on data from the Japanese Government’s Ministry of Finance AccountAbility, and other sources, we find that the level of NCR has a positive relationship with FDI inflow for developing countries. The relationship for developed countries is negative but not statistically significant. The underlying host country development stage moderates the (...) relationship. The results can help deepen understanding of FDI behaviors and have practical implications for host countries in terms of attracting FDI. (shrink)

Australia and India have had few reasons in the past to develop systematic and significant levels of economic engagement. This was due to very different positions they have held in the world-system since the Second World War. De-colonization, the fall of the British Empire, the weak status of the British Commonwealth, and the realpolitik of the Cold War saw India and Australia located on different parts of the geo-political and economic world map with small demographic and cultural flows, and insignificant (...) economic trade. Both countries developed similar economic policy regimes that were essentially state-led nationalist projects of economic development with concomitant policies of import-substitution, local industry-subsidization, highly-regulated financial systems, and high tariffs. The last quarter of the 20th century saw a radical revision of both nations’ economic strategies, with Australia moving first to drop many of its trade barriers in the 1970s and ’80s. It is now one of the most open economies in the world. India’s liberalization programme commenced much later in 1991 but nonetheless has had a dramatic impact on its economic fortunes and growing status in the world economy. With these changes there are increasing opportunities for bilateral trade and a greater economic enmeshment in regional engagements and alignments in the Indian Ocean and in wider Asian fora. One significant indicator of change in growing Australia-India economic engagement is to look at Foreign Direct Investment (hereafter FDI). Currently, the movement of FDI between these two countries is still not very large but has a strong potential to grow over the short to medium term. This paper looks at the future prospect of this growth and asserts that, by engaging in areas of comparative advantage, it will benefit both national economies. Moreover, economic flows are also indicators of great social and cultural traffic. The movement of FDI between the two countries will not only encourage greater flow of peoples, especially outward migration from India to Australia, but also trigger more Australian expatriates living in India (from a very low base). Greater economic trade promises more cultural exchange. (shrink)

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. (shrink)

Interest in sustainability is increasing, and research on ESG management continues. The first issue to be discussed in the present situation is the environment. The study between the environment and internationalization was conducted around two conflicting arguments. First, the pollution haven hypothesis states that multinational corporations move to countries with looser regulations depending on environmental regulation. Next is the Porter Hypothesis, which argues that well-designed environmental regulations offset the cost of compliance and ultimately help firms gain a competitive advantage through (...) innovation that enhances performance. However, the two arguments have not yet reached a consensus conclusion. In addition, studies on the national level and studies considering the distance between countries, an important factor in international management, are lacking. This manuscript aims to revisit the relationship between the strength of environmental regulation and foreign direct investment in the context of increasing environmental concerns. Differences between countries are an important field of international management, but research on environmental regulations is lacking. The purpose of this study is to examine the relationship between existing environmental regulations and FDI and to discuss how the distance between countries can affect existing theories. (shrink)

Because of China’s tremendous increase in foreign direct investment over the past two decades, this method of internationalization has become increasingly significant for companies worldwide. Heavy industry’s dominant role in China’s industrial structure must be modernized to ensure the country’s long-term growth and prosperity. There are 30 provinces in China covered by this dataset, which dates back from 2005 to 2018. Augmented mean group and common correlated effects mean groups estimations demonstrate that China’s industrial upgrading and resource (...) allocation considerably impact FDI inflows. The findings show that FDI inflows appear to be negatively affected by environmental rules. The results show that industrial upgradation and environmental regulations have not had the expected effect on FDI in China without the participation of other stakeholders. For the selected panel, the results from the control variable show that population aging reduces foreign direct investment inflows, whereas, economic growth increases FDI inflows. According to our findings and those of the empirical study, we make some policy proposals to help Chinese provinces attract more foreign direct investment by encouraging and upgrading the screening of such investments. (shrink)

Since the “The Belt and Road” initiative was put forward in 2013, China's foreign investment growth rate has been greatly accelerated. In The Belt and Road context, many scholars used models to analyze the relationship between foreign direct investment, trade flows, and import and export trade. From literature reviews, it is found that previous scholars do not conform to reality and cannot be studied dynamically. Therefore, this study used the panel data of China's foreign (...) direct investment and import and export trade in 40 countries along “The Belt and Road” from 2010 to 2019 to focuses on the impact of foreign direct investment on trade flows, import trade and export trade. Regression analysis was carried out with the trade gravity model and Tinbergen's trade gravity model. In addition to model variables and arguments, the following control variables were adopted: exchange rate, natural resource rents, labor force population, differences in consumer ability, trade openness, and trade agreement signing. The results found that: Foreign direct investment has a positive correlation with trade flow and import and export trade. The labor force population has a negative correlation with trade flow, and import and export trade. The expansion of China's economic scale can increase the scale of China's import and export trade, at the same time, the gap in consumption levels between the two countries will restrict the degree of import and export trade. The possession of natural resources can also promote the development of trade. (shrink)

Regional integration over the past decade has facilitated a huge flow of foreign direct investment (FDI) into Latin America. Less is known, however, about why these newforeign enterprises decided to enter specific markets. This study investigates three recent investments in Costa Rica: two by U.S.-based multinational corporations (MNCs) and another by an MNC based in Spain. The behavior of these MNCs is examined in their initial bargaining and subsequent operations. Through the lens of political economy, this study (...) concludes that Costa Rica’s stable democratic institutions and formalized economic links through multilateral and regional trade and investment accords constitute an advanced factor of comparative advantage that attracted foreign investment to Costa Rica and induced the MNCs to become responsive to host country interests. (shrink)

This study utilizes social exchange theory to argue that a more complete picture of the effects of China’s FDI in Africa needs to include non-economic factors, especially institutional forces that incorporate macro political considerations. We propose that economic dependencies created by China’s FDI in Africa are reciprocated by votes in international organizations, and thus, we hypothesize and test that increasing China’s FDI in African nations leads to increased political alignment in international affairs with those African nations. The proposed relationship, however, (...) will be weakened for African countries with stronger governance mechanisms. Using data for China’s FDI in African countries from 2001–2019, we find support for our hypotheses. We find that China’s economic engagement in Africa has resulted in increased political alignment on international issues evidenced by votes in United Nations organizations raising the possibility Africa’s most attractive resource may not be economic, but rather political. This, however, poses the question of whether votes are a ‘resource’ that can be traded for economic purposes. (shrink)

Do foreign direct investment (FDI) and international business ventures promote positive social and economic development in emerging nations? This question will always prove contentious. First, the impacts differ according to context. Second, the social consequences and spillover effects of knowledge diffusion and technology-sharing may be limited and hard to measure. Third, contributions to enhancing social responsibility and improving living standards in host countries are delayed in effect, causally complex, and also hard to measure. Outcomes often critically depend (...) on collaboration of governments, international institutions, the business world, and non-governmental organizations (NGOs). Research in this area is challenging and requires interdisciplinary collaboration between economists, financial experts, sociologists, ethicists, and other specialists. This paper explores: (1) the evidence to support the proposition that FDI and international business improve social conditions in less-developed countries, and: (2) how these improvements are linked to strategies of corporate social responsibility (CSR) and ethical business practice. The paper draws insights from development, FDI, poverty alleviation, and bottom-of-the-pyramid (BOP) literature. Applications are demonstrated using examples from poverty-stricken areas of Sub-Saharan Africa. The paper attempts not only to argue theoretically but also to provide practical evidence. The approach is simultaneously descriptive, analytical, and prescriptive in order to address a wide audience. It also highlights issues and trends for further academic research and presents the viewpoint that some limitations lie in the nature of ethics frameworks widely referenced in business and that these often fail to consider the compatibility of ethical constructs with relevant incentives. In this vein, we explore the application of Homann’s framework for advantage and incentive-based ethics. (shrink)

The consequences of foreign direct investment (FDI) for human rights protection are poorly understood. We propose that the impact of FDI varies across industries. In particular, extractive firms in the oil and mining industries go where the resources are located and are bound to such investment, which creates a status quo bias among them when it comes to supporting repressive rulers (“location-bound effect”). The same is not true for nonextractive multinational corporations (MNCs) in manufacturing or services, (...) which can, in comparison, exit problematic countries more easily. We also propose that strong democratic institutions can alleviate negative impacts of extractive FDI on human rights (“democratic safeguard effect”). Using U.S. FDI broken up into extractive and nonextractive industries in 157 host countries (1999–2015), we find support for these propositions.1 Extractive FDI is associated with more human rights abuse, but nonextractive FDI is associated with less abuse, after controlling for other factors, including concerns about endogeneity. We find also that the negative human rights impact of extractive FDI vanishes in countries where democratic institutions are stronger. Our results are robust to a range of alternative estimation techniques. (shrink)

Globalization is multifaceted and involves the interaction among businesses, services, governments, and societies beyond national borders. As a result, the flow of foreign direct investment, international trade in goods and services, and the economic interdependence of the nations of the world have been increasing. At the same time, much attention has been paid to the effect of corruption prevalent within many cultures and societies, and its impact on the economies, especially developing economies. This paper examines the relationship (...) between human capital investment, the level of national corruption, and the global economic integration of a nation in developing countries. Based on the data collected from over 60 countries, and building on the FDI and human capital theories, it was found that human capital investment and corruption are related to GEI. It was also found that the level of corruption moderates the relationship between human capital investment and GEI of developing economies. The findings of the study can help to deepen our understanding of GEI and have practical implications for developing countries in terms developing human capital, which plays a critical role in today’s knowledge-based economy. (shrink)

AbstractForeign direct investment (FDI) in offshore financial centers (OFCs) is gaining increased attention in business ethics research. Much of this research tends to focus on OFCs as locations where firms can avoid taxes, considering such behavior as unethical. Yet, there is dearth of studies on capital round-tripping by emerging market firms, which is an integral part of this phenomenon. Such round-tripping involves firms sending capital into OFCs only to invest it back in the home country under the guise (...) of “foreign” investment. Presently there is little discussion of the ethical implications of such round-trip FDI activities. In this paper, we conceptualize round-tripping as institutional arbitrage and look at the determinants and ethical implications of such investments into OFCs. Exploring Russian round-tripping we note that firms tend to invest more funds in OFCs that offer a combination of tax and secrecy, or secrecy and property rights protection arbitrage opportunities. In either case firms exploit the opportunities provided by institutional differences between the OFC and Russia while investing back into Russia. Our results tend to indicate that equating OFC investment to tax avoidance and thus deeming it as unethical behavior is too narrow an explanation in the case of emerging economy round-tripping. This is because such investments are often motivated by the unethical behavior of home country stakeholders and may in fact provide benefits to society. (shrink)

According to various reports, human rights violations in China include the detention of activists, forced abortions and sterilizations, and the repression of religious and spiritual groups, among others. Yet foreign direct investment in China is growing rapidly, as is outsourcing to Chinese producers. By adapting the Sullivan Principles to China, this essay maps out ethical guidelines for U.S. companies operating in China.

National governments have signed and ratified over three thousand International Investment Agreements (IIAs), which for the first time give multinational firms standing to sue host governments in international arbitration tribunals. IIAs have led to a host of high-profile and controversial legal disputes that have led to claims that investor state arbitration may be impeding governments in their ability to regulate and to protect their citizens’ well-being, a phenomenon known as “regulatory chill.” To understand the normative implications of regulatory chill, (...) I analyze investor state arbitration over tobacco in Australia and Latin America. I examine legislative discussions over possible regulatory changes in Australia and Uruguay, the two cases that have faced disputes over tobacco laws, as well as in Latin American countries that provide access to the legislative debates and had legislative initiatives that sought to strengthen tobacco legislation. These cases demonstrate that tobacco packaging laws in a number of countries have been delayed or reduced as a result of fears of potential arbitration among the government and legislators. This regulatory chill is normatively problematic as it suggests that states may be giving up more of their regulatory authority than they initially believed they would have to under IIAs. (shrink)

Stakeholder literature tends to presume that effective stakeholder dialogue, occurring directly or indirectly, among a focal firm, local communities, governments, and nongovernmental organizations is desirable for successful firm–stakeholder relationships. Even if theoretically desirable, effective dialogue does not always occur. There are two key theory-informing lessons in Botnia’s Fray Bentos successful green field pulp mill investment and start-up in Western Uruguay. First, critics could not halt the project politically supported by Uruguay in an expanding multi-party international dispute. Second, the Botnia (...) corporate communications process did not succeed in building consensus relationships, and attention was not paid to discourse creating shared meanings among all stakeholders. Participatory relationships were few, and successful dialogue was at best limited to supporters. This article uses discursive analysis to examine how newspaper and press release texts and language used therein both shaped and reflected the dynamically changing nature of firm–stakeholder relations in the Fray Bentos dispute. Despite the focal firm’s professed good intentions to create participatory relationships with its stakeholders during the building project, various stakeholders opposed the project and Botnia was caught in the crossfire of heated debate between Uruguay and Argentina. Three different frames changing over time are identified: the investment frame, the conflict frame, and the political frame. The analysis shows that the relationships between the focal firm and stakeholders involved many meanings only partly shared, due in part to a lack of corporate appreciation for the role of language in managing firm–stakeholder relationships. (shrink)

Source: Author: Uzoamaka S. Chigbu, Chijindu Promise Ubah, Ezeji E. Chigbu The level of bank development has a determinant effect on the growth potentials of a developing economy. In response, this study examined the impact of banking sector development on foreign investment inflows in the West African countries of Nigeria and Ghana. The study relied on secondary data for analysis and made use of multiple regression technique. However, to ensure the authenticity of our result, Augmented Dickey-Fuller unit root (...) test and Johansen Cointegration techniques were respectively employed to test for the presence unit root and long-run equilibrium relationship in the exogenous variables. Additionally, causal relationships were tested with Granger Causality. It was revealed that banking sector development has a significant influence on foreign investment inflows in the two West African countries. Specifically, domestic credit to private sector and bank deposit rate has significant influence on foreign investment inflows in both countries. Whereas domestic credit to private sector is directly related to the dependent variable in Ghana, it is related inversely in Nigeria. It was also discovered that bank lending rate is significantly and positively related to foreign investment in Ghana. Intermediation efficiency and profitability of banks should be improved by enhancing the capital structure and adopting the appropriate lending rate especially in Nigeria as measures to attract more inflows of foreign investment in both countries. ]]>. (shrink)

The paper discusses the Chinese policy environment as regards the experiences of foreign firms in China. In particular, the study focuses on the changes in China’s policies toward foreign-invested firms and the companies’ perceptions of protectionism of the Chinese regulatory environment. Theoretically, the paper reflects approaches in international political economy and business studies on the bargaining relations between host states and firms, and institutional perspective on business strategy that focuses on the dynamic interaction between organizations and their institutional (...) environment. Hence, the approach takes into account the formal and informal institutional constraints that firms face in a particular institutional framework. Drawing from international survey data, as well as interviews with China-based Finnish firms, the paper analyzes the different types of formal and informal protectionism that foreign companies face in China. It is found that foreign firms perceive the Chinese policy measures as increasingly protective, strict toward foreigners, and favoring of local companies. This is based on China’s strategy to remove the earlier preferences for inward foreign direct investment and to support, instead, the growth of indigenous companies. At the same time, the Chinese market presents such a potential that attracts foreign firms to increasingly invest in the country. China has a strong position in competing for investments: its aspiration for higher technology, together with its labor resources, gives China an unique advantage in bargaining with foreign firms over investments. (shrink)

Despite the rich body of research on the outward foreign direct investment (OFDI) by Chinese multinationals, little attention has been given to the fact that China’s OFDI is facing a high failure rate even in their initial attempt to enter a foreign market. Grounded on institutional theory, this study provides a nuanced view of the expansion dynamic of Chinese multinational firms overseas using a unique dataset that contains both successful and troubled Chinese foreign market entry (...) attempts between 2018 and 2021. We find that at the firm level, state-owned firms are more likely to face difficulties when trying to enter a new market compared to their private counterparts. Firms’ corporate social responsibility (CSR) reporting reduces the chance of failure. These effects are conditioned on the political, economic, and cultural distances between the home and host counties. (shrink)

Four decades have passed since the EU and China established diplomatic relations in 1975, and now became mutually indispensable economic partners, presenting both an opportunity and challenge. During that time, after the first market reforms were introduced in 1978, China has transitioned from a predominantly agricultural to industrial and service-oriented economy. On 11 December 2001, China also became the 143rd member of the WTO. The aim of this research is to quantitatively compare the US, EU and Chinese GDP from 1995 (...) to 2014, the US and Chinese outward FDI from 1995 to 2013, and the EU 28 Total Imports from and Exports to the US and China between 2002 to 2014, and analyse the impact of the exponentially rising Chinese investments in the European Union (EU). We have found that while the US economy experienced a regression in general, and exhibited outward FDI exponential decrease in particular, the Chinese outward FDI sustained an exponential growth. Our analysis has shown that the now weakened US dollar and diminished US economic and industrial power, along with the US designed and archaic post World War II European institutions, vitiated by the recent US Economic Recession, which has swept along the EU and all other US dependent foreign economies globally, are and will continue to experience the primary impact of the exponentially rising economic investment of China in the EU. Furthermore, we have found that the Chinese economic growth has been affecting both the EU identity and policies. Yet, its full effect is waiting to be realized. The Chinese investment in the EU is estimated to peak during the next decade, when China will become by far the foremost economic partner of the EU. This crossroad may be reached as soon as in few years’ time and contribute towards the EU – Asian regional stabilization. In the changing context of the Sino – EU - US relations, due to the exponentially growing economic prosperity and rising global influence of China, the EU international institutions and socio-political structures will re-emerge with the once forgotten access to the 21st Century Silk Road Economic Belt, “The Silk Road II”, between China and the EU in the foreseeable future. (shrink)

This article argues that the quiet politics of informal business-state interaction explains the political determinants of growth regimes. Building on the business power literature within the study of comparative capitalism, it shows that the noisy politics of elections often leads to changes of government but rarely to fundamental changes in the growth regime. Rather, growth models can be traced to the interactions and interests of dominant corporations within a country and its policymaking elites. The argument is developed through a comparative (...) case study research design, using the case of foreign direct investment–led growth in Ireland and Hungary. FDI-led growth regimes are a universe of cases that rely on state-led industrial and enterprise policies targeting the capital investment of foreign-owned multinational firms. Despite periods of noisy electoral politics challenging basic tenets of the FDI-led growth model in both Hungary and Ireland, the continuity of FDI-oriented growth is traced to the corporate politics of business-state elite deals. (shrink)

A transnational capitalist class has emerged as that segment of the world bourgeoisie that represents transnational capital, the owners of the leading worldwide means of production as embodied in the transnational corporations and private financial institutions. The spread of TNCs, the sharp increase in foreign direct investment, the proliferation of mergers and acquisitions across national borders, the rise of a global financial system, and the increased interlocking of positions within the global corporate structure, are some empirical indicators (...) of the transnational integration of capitalists. The TCC manages global rather than national circuits of accumulation. This gives it an objective class existence and identity spatially and politically in the global system above any local territories and polities. The TCC became politicized from the 1970s into the 1990s and has pursued a class project of capitalist globalization institutionalized in an emergent transnational state apparatus and in a "Third Way" political program. The emergent global capitalist historic bloc is divided over strategic issues of class rule and how to achieve regulatory order in the global economy. Contradictions within the ruling bloc open up new opportunities for emancipatory projects from global labor. (shrink)

Transition economies have inherited of a lot of outdated or blackwarded facilities in many industries from the socialist period. Restructuring such enterprises or industries need massive inputs of investment and technology. Privatisation and foreign direct investment provide answers to this problem, but at the price of important lost of control over the concerned bodies. Here we consider the situation of Hungarian telecoms which have been successfully privatised to Deutsch Telecom and try to assess the results of (...) the operation and the effects on the potential growth of the industry and more generally on the Hungarian economy.Les économies en transition ont hérité de la période socialiste un certain nombre d’entreprises et de secteurs aux installations largement obsolètes. Leur mise à niveau constitue un préalable à l’amélioration qualitative des productions, des processus de production, et par conséquent à une élévation progressive des salaires réels et des niveaux de vie. Cette opération nécessite des injections massives de capitaux et de technologie. La privatisation des entreprises concernées, en particulier au bénéfice d’investisseurs étrangers, peut apporter une solution, mais au prix d’une perte importante de contrôle.Ici, nous examinons la situation des télécoms en Hongrie, qui ont été privatisées au profit de l’entreprise elle-même, du point de vue de l’industrie des télécommunications, et plus généraleme- nt in s’interroge sur les effets qu’elle peut avoir sur l’ensemble de l’industrie hongroise. (shrink)

Rankings of countries by perceived corruption have emerged over the past decade as leading indicators of governance and development. Designed to highlight countries that are known to be corrupt, their objective is to encourage transparency and good governance. High rankings on corruption, it is argued, will serve as a strong incentive for reform. The practice of ranking and labeling countries "corrupt," however, may have a perverse effect. Consistent with Social Labeling Theory, we argue that perceptual indices can encourage the loss (...) of needed investment and, thus, contribute to higher rates of corruption within unfavorably ranked countries. In effect, corruption indices may inhibit foreign direct investment, the effect of which is to encourage the status quo in terms of corruption ranking. Using an experimental study design, we test the effects of country corruption rankings on the assessment of country investment desirability and find ranking exposure causes shifts in country investment desirability for 10 of 12 countries studied. These findings suggest that corruption rankings, which are based on perceptions of corruption, may cause country isolation and a reduction in legitimate means of investment. (shrink)

Proponents of large-scale land acquisitions (LaSLA) argue that poor countries could benefit from foreign direct investment in land (World Bank 2011), while opponents argue that LaSLA is nothing more than neo-colonial theft of poor peasants’ livelihoods, i.e., land grabbing (Borras and Franco in Yale Hum Rights Dev L J, 13: 507–523, 2010a). To ensure responsible agricultural investments (RAI), a voluntary “code of conduct” for land acquisitions has been proposed by the World Bank (2011) and the FAO (2012). (...) A critical reaction to the “code of conduct” approach is the proposal for a set of minimum human rights principles, suggested by the UN Special Rapporteur on the Right to Food, De Schutter (2009). Even more critical of the “code of conduct” approach are Borras and Franco in Yale Hum Rights Dev L J, 13(2): 507–523, 2010a, who propose empowering small-scale farmers by giving them land sovereignty so that they are assured control over their land. This paper is a review of the governance and ethics issues connected to LaSLA. It has four main objectives: First, it offers a critical presentation of three major governance approaches to LaSLA: the “liberal code of conduct” (FAO and the World Bank), the ‘critical liberal human rights’ approach (De Schutter) and the ‘Marxist’ approach (Borras and Franco). Second, it discusses the notion of a human right to land, with reference to John Locke’s theory of appropriating land. Third, it discusses the issue of ensuring an inclusive process in LaSLA. Finally, an argument is made for instituting a (global) obligation to refrain from participating in or benefitting from institutional schemes that facilitate negative land grabbing (Pogge in Politics as usual: what lies behind the pro-poor rhetoric? Polity Press, Cambridge 2010). (shrink)

Remittances are private financial transfers from migrant workers back to their countries of origin. These are typically intra-household transfers from members of a family who have emigrated to those who have remained behind. The scale of such transfers throughout the world is very large, reaching $338 billion U.S. in 20081—several times the size of overseas development assistance (ODA) and larger even than foreign direct investment (FDI). The data on migration and remittances is too poor to warrant very (...) firm conclusions about their effects—actual or potential—on poverty and development in poorer countries. We will however, present reasons that make it plausible to believe that remittances can contribute to poverty-reduction and promote development in poorer countries. Our main aim, however, is not to engage in detail with empirical debates about the effects of these transfers, but to establish moral grounds for favorable tax treatment on remittances on the assumption that they do have positive effects on receiving countries. (shrink)

The aim is to investigate the Information Communication Technology on GDP growth in Western Balkan countries from 2000 - 2019. Different econometric techniques were used such as pooled OLS, fixed effects, random effects, and the Hausman Taylor model with instrumental variables. The findings indicate that fixed telephone subscriptions and individuals using the internet have a positive effect on GDP growth, while the fixed broadband subscriptions and mobile cellular subscriptions have a negative effect on GDP growth. The results also show general (...) government final consumption has a negative effect on GDP growth, whereas foreign direct investment has a positive effect on GDP growth, but the coefficient is statistically insignificant. The study will serve for policy makers to invest more in ICT since this will contribute to the economic growth and welfare benefits. There is no study that has been analyzed about ICT in Western Balkan countries, thus findings will be valuable to the government. (shrink)

This study investigates the conditions under which host country portfolios are more likely to regularize corporate tax behavior. We use a sample comprising data on Japanese multinationals covering 2004 to 2014 to examine the relationship between foreign direct investment host country portfolios and tax avoidance from the perspectives of investor protection and ethical standards. Our multivariate regression results show that the number of countries with strong investor protection/high ethical standards in the FDI host country portfolio is negatively (...) related to tax avoidance. We also find that the effect of investor protection/ethical standards is less pronounced when the degree of indulgence is high. Further analyses show that the relationships we find are affected by disclosure requirements, local regulations, and accounting standards. These findings remain unchanged after several sensitivity checks. Overall, this study contributes to the business ethics literature by showing that FDI host country investor protection and ethical standards are external monitoring mechanisms for mitigating tax avoidance by multinationals. (shrink)

Nearly one-quarter of Costa Rica's export earnings derive from an expanding tourist sector, one that is increasingly diversified in a mix of tourist niches. Ecotourism is the fastest growing niche and its promises are featured in a range of sites and practices, including the largest multinational hospitality and hotel corporations. These companies promote a vision of sustainability that relies on expanding consumption of ‘environmental' amenities through profit-driven global corporations – a vision that is, to some, antithetical to the very meaning (...) of ecotourism. Our study explores the historical evolution of tourist development in Costa Rica, specifically large-scale coastal development, as a means for national development. Amid pressures to attract foreign direct investment in a neoliberal era, Costa Rica has struggled to maintain its developmentalism, which includes social welfare, environmental protection, and public goods, including coastal preservation and public access. We argue Costa Rica's simult.. (shrink)

This manuscript investigates the factors influencing the selection of responsive corporate social responsibility (CSR) programmes in the subsidiaries of Japanese manufacturing multinational enterprises (MNEs) operating in Indonesia. With a significant and growing manufacturing sector funded by foreign direct investment—of which Japanese MNEs are a major participant—Indonesia offers a novel but significant focus given its low GDP per capita, ecological challenges and being one of the first nations in South-East Asia to mandate CSR practices. Institutional and agency theories (...) provide a multitheoretical lens for this responsive CSR study enabling a rich, robust framework for addressing both the external and internal drivers of CSR. This study uses a qualitative approach with a sample of four Japanese manufacturing MNEs. The data were collected by interviewing managing directors and CSR personnel of the subsidiary organisations and investigating the CSR practices in secondary data sources from websites and CSR reports from both the headquarter and subsidiary organisations. A proximity effect based on a combination of the size and location of the subsidiary operation was found to be important in determining responsive CSR activities. Personal preferences and connections with the community were also identified as key factors. Feedback loops were identified through MNE CSR reports and websites, which could influence other MNEs and community stakeholders seeking funding. This study's main contribution to the literature is the development of a conceptual framework that details both the internal and external factors influencing the decision-making process of responsive CSR. (shrink)

A large body of scholarship in political economy suggests economic growth, and foreign direct investment in regulated industries in particular, is more likely to occur when formal institutions allow states to provide credible commitments regarding the security of property rights. In contrast, this article argues that we must instead examine differences in firm organizational structure and embeddedness to explain variation in the resilience of privatization contracts in weak institutional environments. Domestic investors—or, if contracts are granted at the (...) subnational level, domestic investors with diverse local holdings—work most effectively in the developing world. Domestic investors are better able to negotiate mutually beneficial adaptations to their formal contracts with host governments because they can draw on informal contractual supports that derive from cross-sector diversification and embeddedness in the market. This article finds strong support for this argument through an analysis of fourteen water privatization contracts in Argentina. (shrink)

As an economic pillar, major resource consumer, and polluter of cities, the chemical industry determines many cities’ transformation, prosperity, and decay. It is thus a major concern for achieving the UN Sustainable Development Goals. In China, which is at the stage of accelerated industrialization that is varied across regions, the chemical industry has gradually retreated from developed cities, such as Beijing and Shanghai, in the eastern region, and has become the inevitable choice for industrialization of less-developed cities, such as Xi’an, (...) Chengdu, and Chongqing, in the western region. This study took the perspectives of chemical industrial sectors and their spatial differences to understand the changing patterns of the chemical industry and its dominant cities. It identified chemical industrial cities, examined their spatial-temporal patterns with respect to their industry scale and structure, and accounted for factors influencing the spatial evolution from coastal areas to inland regions. The results show that large CICs were mainly located in coastal port regions with balanced industrial sectors, while small CICs were mainly distributed in inland areas with abundant oil and coal resources and a single dominant industrial sector. The location factors of ports, markets, and technology play important roles in the eastern region, while resource conditions and foreign direct investment promote the chemical industry’s development in the central, western, and northeastern cities. These findings improve the understanding of CICs’ spatial transformation and shed light on the policy-making of chemical industrial development in China and other developing countries. (shrink)

This paper uses panel OLS, IV, and system GMM methods to empirically study the effects of manufacturing and producer service corporate co-agglomeration on green economy efficiency in China. Chinese panel data from 2000 to 2019 are collected to assess the GEE and co-agglomeration degrees. The regression results show that there is an “inverted U-shaped” relationship between co-agglomeration and GEE. However, regional heterogeneity is found in the effects of corporate co-agglomeration on GEE. The mediating analysis indicates that corporate co-agglomeration could increase (...) GEE through business entrepreneurship and innovation entrepreneurship. Variables such as transportation infrastructure, human capital, foreign direct investment, and environmental regulations are also found to have an elevating effect on GEE, whereas local fiscal expenditure on environmental protection has little effect. The findings in this paper indicate that entrepreneurship plays an important role in the process of co-agglomeration impacting GEE which differs in different regions and thus provide references for corporate and regional sustainable development. (shrink)

This paper explores the relationship between export growth and economic growth in the case of Pakistan by employing time series data for the period 1971- 2013. This study has incorporated variables like GDP exports, imports and Foreign Direct Investment. We have applied ARDL to co-integration and Error Correction Model. The study provides the evidence of stationary time series variables, the existence of the long - run relationship between them, and the result of ECM revealed short rum equilibrium (...) adjustment. Pakistan has many options for enhancing the export of the country. There is a dire need to minimize trade barriers and restrictions such as import and export quotas. Government of Pakistan had introduced Structural Reforms for liberalization, privatization and de-regulation which will actually shifted the trend of trade at a significant level in the end of 1980s. Low levels of interest rate can help exportable industries in which investments are needed to promote and enhance the exports. Stable exchange rate is the first and the best policy option for increasing the export and managing the imports. There is a cause and effect relationship between exchange rate and FDI. Pakistan has to immediately find the policies and processes that support logistics and facilitates trade. (shrink)

"This book contains ideas to develop interdisciplinary and transdisciplinary views on economy and society. It aims to disseminate heterodox ideas on various subjects related to economics and global society. The book is organised in six parts. Part 1 contains the key lectures of Backhaus on the concept of state sciences and of Klamer on the importance of culture for economics. Parts 2- 6 contain successively contributions in the areas of economic paradigms and theories, population and society, corporate issues, environment, and (...) international relations. Examples of the content are: - the changes of family life cycles due to the rise of non-traditional households; - subjective and objective inflation rates after the introduction of the Euro; - the economics of genetic engineering; - the contribution of foreign direct investment to the economic development of host countries; - the inaccuracy of economic models applied in places characterized by extreme income disparities; - the improvement of political and corporate governance; - evolutionary thinking and emission trading; - freedom and order in the European Union; - the reform of social policy in Europe. The book provides interesting creative multi-disciplinary ideas with respect to various topical issues concerning the contemporary global society. It is highly recommended for economists and social scientists in search of broad views on social science and society.". (shrink)

This textbook examines how far economic integration in Europe has come. Is it still more useful to view the European Union countries as a set of individual economies, or does it now make more sense to look at them as forming one larger economy? The book attempts to answer this question in a range of expert contributions dealing with all the major aspects of European economic integration, including trade, economic growth, demographics, labour markets, industrial structures, foreign direct (...) class='Hi'>investment, monetary integration and eastern enlargement. (shrink)