scholarly journals Do Deep Regional Trade Agreements Enhance International Technology Spillovers? Depth, Breadth, and Heterogeneity

2021 ◽  
pp. 127-144
Author(s):  
Naoto Jinji ◽  
Xingyuan Zhang ◽  
Shoji Haruna
Keyword(s):  
Direct Investment ◽  
Multinational Enterprises ◽  
Bilateral Trade ◽  
Patent Citation ◽  
Technology Spillovers ◽  
Host Countries ◽  
Trade Patterns ◽  
Link Type ◽  
Vertical Foreign Direct Investment ◽  
The Relationship

AbstractIn Chap. 10.1007/978-981-16-5210-3_5, we examine the relationship between bilateral trade patterns and international technology spillovers. In Chap. 10.1007/978-981-16-5210-3_6, we analyze how horizontal and vertical foreign direct investment (FDI) of multinational enterprises (MNEs) affects technology spillovers between themselves and firms in host countries. Both chapters analyze the issues from theoretical and empirical points of view. Each chapter shows that international trade or FDI is an important channel of international technology spillovers, but the effect on them is heterogeneous, depending on the type of trade patterns or the structure of FDI. In both chapters we measure technology spillovers using patent citation data.

scholarly journals Vertical spillovers from multinational enterprises: Does technological gap matter?

2016 ◽  
Vol 63 (3) ◽  
pp. 313-323 ◽  
Author(s):  
Rosanna Pittiglio ◽  
Filippo Reganati ◽  
Edgardo Sica
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Manufacturing Sector ◽  
Spillover Effect ◽  
Empirical Literature ◽  
Foreign Investors ◽  
Technological Gap ◽  
Local Companies ◽  
The Relationship

Foreign direct investment (FDI) from Multinational enterprises (MNEs) can augment the productivity of domestic firms insofar as knowledge ?spills over? from foreign investors to local producers. The capacity of local companies to exploit knowledge from MNEs can be affected by the technology gap between foreign and local enterprises at both horizontal (in the same industry) and vertical (in different industries) level. Whereas most of the empirical literature has focused exclusively on the analysis of horizontal and backward spillovers (i.e. between MNEs and local suppliers), the present paper also examines the relationship between FDI-related spillovers and technological gap in the Italian manufacturing sector at forward level (i.e. between MNEs and local buyers). Results suggest that at both intra-industry and forward level, the technological gap is of considerable importance for the spillover effect, particularly in the case of low-medium gap.

Transparency and Inward Investment Incentives

2014 ◽  
pp. 303-322
Author(s):  
Frederick Lehmann ◽  
Ana Teresa Tavares-Lehmann
Keyword(s):  
Foreign Direct Investment ◽  
Multinational Corporations ◽  
Direct Investment ◽  
Investment Incentives ◽  
Host Countries ◽  
Inward Foreign Direct Investment ◽  
The Relationship ◽  
Fdi Attraction

This chapter examines transparency in relation to inward foreign direct investment (FDI), particularly inward investment-focused policies and incentives. It begins by reviewing the literature on transparency and inward investment incentives before discussing some of the merits of transparency based on its effects on the quantity and quality as well as the process by which FDI is attracted. It then considers the distinction between transparency in norms versus transparency in processes and how these differences affect FDI attraction. It also explores multilevel transparency and its impact on inward investment, along with multiparty transparency and its effect on FDI. The chapter concludes by focusing on the relationship between multinational corporations and host countries.

scholarly journals Climbing the Rungs of the Quality Ladder: FDI and Domestic Exporters in Romania

2020 ◽  
Vol 130 (628) ◽  
pp. 937-955
Author(s):  
Matej Bajgar ◽  
Beata Javorcik
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Positive Relationship ◽  
Host Countries ◽  
Firm Level ◽  
Level Information ◽  
Quality Ladder ◽  
Quality Of Products

Abstract This article argues that inflows of foreign direct investment can facilitate export upgrading in host countries. Using customs data merged with firm-level information for 2005–11, it shows a positive relationship between the quality of products exported by Romanian firms and the presence of multinational enterprises (MNEs) in the upstream (input-supplying) industries. Export quality is also positively related to MNE presence in the downstream (input-sourcing) industries and the same industry, but these relationships are less robust. These conclusions hold both when the product quality is proxied with unit values and when it is estimated following the approach of Khandelwal et al. (2013).

scholarly journals Making FDI More Sustainable: Towards an Indicative List of FDI Sustainability Characteristics

2019 ◽  
Vol 20 (6) ◽  
pp. 916-952 ◽  
Author(s):  
Karl P. Sauvant ◽  
Howard Mann
Keyword(s):  
Multinational Enterprises ◽  
Sustainable Development Goals ◽  
Host Countries ◽  
The Sustainable Development ◽  
Four Dimensions ◽  
Stakeholder Groups ◽  
The World ◽  
Development Goals ◽  
Investment Facilitation ◽  
The Relationship

Abstract Reaching the Sustainable Development Goals has become the lodestar of development policymaking. Increased sustainable Foreign Direct Investment (FDI) flows to developing countries can contribute to reaching the Goals. This article analyzes 150 instruments (treaties, standards, codes) prepared by key stakeholder groups in the FDI space bearing on the relationship between host countries and foreign investors, to identify FDI sustainability characteristics along the following four dimensions: economic, social and environmental development and governance. These instruments indicate especially the contributions government expect multinational enterprises (MNEs) to make to host countries and those MNEs expect to make to host countries. The analysis yields a set of indicative ‘common FDI sustainability characteristics’, and ‘emerging common FDI sustainability characteristics’. These characteristics can guide various stakeholder groups that seek to increase the contribution of FDI to development; the World Trade Organization’s Structured Discussions concerning an investment facilitation framework for development; and to arbitrators seeking to take the development dimension into account when deliberating investor-state disputes.

scholarly journals Inward FDI spillovers and emerging multinationals’ outward FDI in two directions

2021 ◽  
Author(s):  
Renfei Gao
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
State Ownership ◽  
Outward Fdi ◽  
Host Countries ◽  
Industry Competition ◽  
The Face ◽  
Emerging Multinationals

AbstractInward foreign direct investment (IFDI) carries critical implications for emerging market multinational enterprises’ (EMNEs’) outward foreign direct investment (OFDI). While extant research provides evidence for the positive linkage between IFDI and EMNEs’ OFDI, less is known about the directionality of such OFDI—where to go. This study aims to extend the IFDI-OFDI linkage by differentiating EMNEs’ upward and downward OFDI (i.e., OFDI projects in more and less advanced host countries than their home markets). Using panel data on 1334 Chinese multinationals, I find that IFDI promotes EMNEs’ upward OFDI, but this effect is weakened by state ownership and industry competition. Moreover, my findings show that although IFDI is not related to EMNEs’ downward OFDI in general, their linkage becomes positive in the conditions of higher state ownership or weaker industry competition. This study advances our understanding of the directionality (i.e., where to go) of EMNEs’ OFDI in the face of IFDI spillovers.

scholarly journals Foreign Direct Investment and Trade—Between Complementarity and Substitution. Evidence from European Union Countries

2021 ◽  
Vol 14 (11) ◽  
pp. 559
Author(s):  
Marian Catalin Voica ◽  
Mirela Panait ◽  
Eglantina Hysa ◽  
Arjona Cela ◽  
Otilia Manta
Keyword(s):  
European Union ◽  
Foreign Direct Investment ◽  
Foreign Trade ◽  
Direct Investment ◽  
Trade Flow ◽  
The European Union ◽  
Host Countries ◽  
Positive Effects ◽  
The Relationship ◽  
Visegrad Group

This aim of this work is to study the relationship between foreign direct investment (FDI) and trade. FDI is a driving force for economic growth for host countries. The positive effects of FDI are seen in many aspects of the economy. However, the implications of FDI on foreign trade are questionable. Therefore, this study uses a Granger causality technique to test whether the relationship between FDI and foreign trade is complementary or substitutive. The findings of this study indicate that this relationship appears to be complementary, and FDI investment does cause an increase in trade flow in the countries that are taken into consideration. This research aims to make a comparison between the relations of FDI flows of three groups of countries from the European Union (EU)—Romania and Bulgaria, the Visegrád Group and the Euro area—for the period of 2005 to 2019. However, the results indicate that this link between the variables is not yet found for the three group of countries, and further research is required in this aspect. This leads to the conclusion that the FDI impact on foreign trade of the host country depends on the type of investment and absorptive capacity of the receiver, the economic development of host and home countries, and not every type of FDI leads to more trade.

scholarly journals Effect of Foreign Direct Investment on Bilateral Trade: Experience From Asian Emerging Economies

SAGE Open ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 215824402110544
Author(s):  
Hafiz M. Sohail ◽  
Mir Zatullah ◽  
Zengfu Li
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Emerging Economies ◽  
Direct Investment ◽  
Bilateral Trade ◽  
Fixed Effect Model ◽  
Effect Model ◽  
Trading Partners ◽  
Corruption Perception ◽  
The Relationship

This study examines the effects of foreign direct investment (FDI) on bilateral trade between East and South Asian emerging economies, including their related trading partners. We cover the bilateral data on trade and FDI from June 2001 to June 2019. We estimate an augmented gravity model of trade to examine the study sample. This study is the first to use the Mundlak approaches an alternative for the fixed effect model to empirically estimate the relationship between FDI and trade among the countries in the region. Results show that free trade agreements (FTAs) and the corruption perception index (CPI) significantly and positively affect bilateral trade. However, the distance variable has become insignificant after introducing the FTA variable to the model. This finding indicates that FTAs marginalize the effect of distance on bilateral trade between the member countries. Thus, policymakers in developing countries should encourage and liberalize FDI from developing countries to enhance the bilateral trade volume.

scholarly journals Determinants of fdi inflows in india

2016 ◽  
Vol 6 (2) ◽  
pp. 186-198
Author(s):  
Siraj-ul-Hassan Reshi
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Domestic Investment ◽  
Host Countries ◽  
Fdi Inflows ◽  
Explanatory Variables ◽  
The Impact ◽  
Fdi Determinants ◽  
The Relationship

Foreign direct investment (FDI) is often seen as an important catalyst for economicgrowth in the developing countries. It affects the economic growth by stimulating domestic investment, increasing human capital formation and by facilitating the technology transfer in the host countries. The main purpose of this paper is to investigate the impact of FDI determinants on FDI inflows in India from the period 1991-2009.The relationship between FDI inflow and its determinants have been analyzed by using the regression analysis and other variables that affect FDI inflows in India such as Developmental expenditure ratio, fiscal deficit ratio, exchange rate and other economic determinant such as GDP as the possible explanatory variables of foreign direct investment inflows in India. The expected results of the study are positive and statistically significant. Regarding the impact of various determinants on FDI in flows empirically, it has beenfound that all the variables except exchange rate have positively and significantly affecting FDI inflows i.e. increase in GDP, Developmental expenditure, foreign exchange reserves, increased the FDI inflows.

Foreign Direct Investment in India Opportunities and Challenges

2020 ◽  
pp. 937-959
Author(s):  
Suranjan Bhattacheryay
Keyword(s):  
Foreign Direct Investment ◽  
Natural Resources ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Business Environment ◽  
Financial Knowledge ◽  
Policy Management ◽  
Host Countries ◽  
Strategic Resources ◽  
The Government

Foreign Direct Investment (FDI) is the dispersal and optimisation of resource packages like human, financial, knowledge, physical and reputational resources. The motivational factors such as natural resources, market resources, strategic resources, efficiency resources, locational advantages, etc., influenced Multinational Enterprises (MNEs) to perform various activities in the host countries. MNEs internationalise business mainly to acquire intangible assets and for balancing resources which they do not possess. India is in receipt of continuous capital flow due to favourable policy management and a strong business environment. Globally, Indian corporations continually display significantly better equity earnings over other countries both developed and emerging. The Government of India is very keen in simplifying FDI rules with an ultimate aim to attract more investors with zero hazards.

Was von ausländischen Direktinvestitionen zu erwarten ist: Unbegründete Ängste in den Heimatländern, übertriebene Hoffnungen in den Gastländern?

2006 ◽  
Vol 55 (1) ◽  
Author(s):  
Peter Nunnenkamp
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Labor Market ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
External Financing ◽  
Industrialized Countries ◽  
Host Countries ◽  
High Expectations ◽  
Important Means

AbstractThe rise in foreign direct investment flowing to developing countries has created high expectations that, by drawing on this source of external financing, developing countries could initiate or accelerate processes of economic catching-up to advanced industrialized countries. By contrast, the public in advanced countries such as Germany is increasingly concerned that the relocation of production and the outsourcing of inputs by multinational enterprises add significantly to domestic labor market problems. A critical review of the literature and own empirical analyses suggest, however, that both views have to be qualified in major respects. As concerns developing host countries, it appears to be more difficult to derive macroeconomic benefits from foreign direct investment than to attract it. The labor market repercussions in advanced home countries are fairly complex. While relocation and outsourcing are important means to support the international competitiveness of domestic enterprises, the employment prospects and the relative wages of less qualified workers are likely to deteriorate.

Sign in / Sign up

Export Citation Format

Share Document