Does technology gap increase FDI spillovers on productivity growth? Evidence from Chinese outward FDI in Belt and Road host countries

2021 ◽  
Vol 172 ◽  
pp. 121050
Author(s):  
Asif Razzaq ◽  
Hui An ◽  
Sarath Delpachitra
Keyword(s):  
Productivity Growth ◽  
Outward Fdi ◽  
Host Countries ◽  
Technology Gap ◽  
Fdi Spillovers ◽  
Belt And Road

Foreign Direct Investment, Intellectual Property Rights, and Productivity Growth

2014 ◽  
Vol 05 (03) ◽  
pp. 1440009
Author(s):  
Sasatra Sudsawasd ◽  
Santi Chaisrisawatsuk
Keyword(s):  
Foreign Direct Investment ◽  
Intellectual Property ◽  
Property Rights ◽  
Intellectual Property Rights ◽  
Productivity Growth ◽  
Direct Investment ◽  
Developed Countries ◽  
Outward Fdi ◽  
The Impact ◽  
Ipr Protection

Using panel data for 57 countries over the period of 1995–2012, this paper investigates the impact of intellectual property rights (IPR) processes on productivity growth. The IPR processes are decomposed into three stages — innovation process, commercialization process, and protection process. The paper finds that better IPR protection is directly associated with productivity improvements only in developed economies. In addition, the contribution of IPR processes on growth through foreign direct investment (FDI) appears to be quite limited. Only inward FDI in developed countries which creates better innovative capability leads to higher growth. In connection with outward FDI, only the increase in IPR protection and commercialization are proven to improve productivity in the case of developing countries, particularly when the country acts as the investing country.

scholarly journals China’s Belt and Road Initiative 2.0

2019 ◽  
Vol 05 (02) ◽  
pp. 233-248
Author(s):  
Jiahan Cao
Keyword(s):  
Sustainable Development ◽  
International Development ◽  
Development Cooperation ◽  
Belt And Road Initiative ◽  
Host Countries ◽  
Developmental Needs ◽  
2030 Agenda ◽  
Development Agenda ◽  
Belt And Road ◽  
Development Goals

As China’s Belt and Road Initiative (BRI) quickly evolves into an updated version for realizing high-quality development, its long-term success will increasingly depend on how well it can earn international legitimacy and credibility. Since sustainability is a critical source of credibility for the BRI, it is necessary to move the BRI forward by amplifying its role as a development agenda and tapping its potential to support global sustainable development and facilitate implementation of the United Nations’ 2030 Agenda for Sustainable Development (2030 Agenda) through delivering more public goods to other developing countries. The BRI projects designed to strengthen infrastructure inter-connectivity can greatly fit the developmental needs of countries along the routes and expedite their achievement of sustainable development goals (SDGs), both explicitly and implicitly. Besides, the growing alignment between the BRI and the 2030 Agenda will generate more strengths and opportunities for China to be recognized as an indispensable player in international development cooperation, enhance the capacity of the BRI to manage environmental, social and governance risks in host countries, promote social cohesion and inclusiveness along the routes, and ultimately transcend short-term economic and political interests for China to win the hearts and minds of other stakeholders involved in the BRI.

scholarly journals The Belt and Road Initiative: China’s New Geopolitical Strategy?

2018 ◽  
Vol 04 (03) ◽  
pp. 327-343 ◽  
Author(s):  
Zhexin Zhang
Keyword(s):  
Belt And Road Initiative ◽  
Host Countries ◽  
International Environment ◽  
The Social ◽  
Social And Economic Development ◽  
The World ◽  
Belt And Road ◽  
Cooperation Strategy ◽  
Peaceful Development ◽  
The Belt And Road

Since its launch in late 2013, China’s Belt and Road Initiative (BRI) has achieved many tangible results that may have lasting effect on the social and economic development of host countries and on the geopolitical dynamics of the world. Its emergence in international political discourse is changing the basic thinking and logic of traditional geopolitical competition. While Western countries tend to interpret the BRI as part of China’s hidden geopolitical strategy to ultimately rule the world, Chinese and most developing nations see it as China’s international cooperation strategy to enhance global connectivity, communication and cooperation, so as to foster a more balanced and equitable world system. To maintain a favorable international environment for further progress of the BRI, China needs to better explain the details concerning the initiative as well as its role in the country’s grand strategy of peaceful development. Meanwhile, China must keep striving to match its words with its deeds in global arenas, so as to win more trust and support from the international community in jointly implementing the initiative.

Time lag analysis of FDI spillover effect

2019 ◽  
Vol 15 (4) ◽  
pp. 629-650 ◽  
Author(s):  
Yilin Zhang ◽  
Zhenyu Cheng ◽  
Qingsong He
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Human Capital ◽  
Technical Efficiency ◽  
Time Lag ◽  
Spillover Effect ◽  
Content Type ◽  
Fdi Spillovers ◽  
Belt And Road ◽  
The Belt And Road

Purpose For the developing countries involving in the Belt and Road Initiative (BRI) with China as the main source of foreign development investment (FDI) and development as the top priority, it appears to attract more and more attention on how to make the best use of China’s outward foreign development investment. However, the contradictory evidence in the previous studies of FDI spillover effect and the remarkable time-lag feature of spillovers motivate us to analyze the mechanism of FDI spillover effect. The paper aims to discuss this issue. Design/methodology/approach The mechanism of FDI spillovers and the unavoidable lag effect in this process are empirically analyzed. Based on the panel data from the Belt and Road developing countries (BRDCs) and China’s direct investments (CDIs) from 2003 to 2017, the authors establish a panel vector autoregressive model, employing impulse response function and variance decomposition analysis, together with Granger causality test. Findings Results suggest a dynamic interactive causality mechanism. First, CDI promotes the economic growth of BRDCs through technical efficiency, human capital and institutional transition with combined lags of five, nine and eight years. Second, improvements in the technical efficiency and institutional quality promote economic growth by facilitating the human capital with integrated delays of six and eight years. Third, China’s investment directly affects the economic growth of BRDCs, with a time lag of six years. The average time lag is about eight years. Originality/value Based on the analysis on the mechanism and time lag of FDI spillovers, the authors have shown that many previous articles using one-year lagged FDI to examine the spillover effect have systematic biases, which contributes to the research on the FDI spillover mechanism. It provides new views for host countries on how to make more effective use of FDI, especially for BRDCs using CDIs.

Autocratic time horizons and the growth effect of foreign direct investment

2019 ◽  
Vol 20 (3) ◽  
pp. 143-161 ◽  
Author(s):  
Daehee Bak ◽  
Chungshik Moon
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Positive Influence ◽  
Policy Preferences ◽  
Growth Effect ◽  
Host Countries ◽  
Time Horizons ◽  
Fdi Spillovers ◽  
Positive Effect

AbstractThe positive influence of foreign direct investment (FDI) on host countries' economic growth has been widely debated. Given the mixed empirical evidence, scholars have sought to find the economic preconditions under which FDI spillovers are likely to occur and facilitate economic growth in the host countries. Those preconditions are not exogenously dictated but largely shaped by governments' policy preferences. Particularly in autocracies, an autocrat's policy preferences are the driving force that determines whether a host country is likely to be equipped with growth-friendly institutions and policies. We argue that such economic institutions and policies are dependent on the time horizons of autocrats in power. Our empirical analysis covering 64 autocratic countries from 1970 to 2005 supports our main argument that FDI has a positive effect on growth when autocratic time horizons are sufficiently long, and positive FDI spillovers mainly occur through the protection of property right institutions.

China’s outward FDI efficiency along the Belt and Road

2016 ◽  
Vol 8 (3) ◽  
pp. 455-479 ◽  
Author(s):  
Zhaobin Fan ◽  
Ruohan Zhang ◽  
Xiaotong Liu ◽  
Lin Pan
Keyword(s):  
Gravity Model ◽  
Regional Cooperation ◽  
Stochastic Frontier ◽  
Parameter Estimates ◽  
Outward Fdi ◽  
Financial Barriers ◽  
Content Type ◽  
The Road ◽  
Belt And Road ◽  
The Belt And Road

Purpose The purpose of this paper is to estimate the China’s outward FDI efficiency and it determinants in 69 countries along the Belt and Road over the period of 2003-2013. Design/methodology/approach This paper defines the extent of the Belt and Road in terms of geographical boundaries, justifying the application of the stochastic frontier gravity model to the FDI analysis, and then constructing a frontier regression model to assess the China’s outward FDI efficiency and it determinants in countries along the Belt and Road. Findings Regarding the core gravity parameter estimates, China’s outward FDI was highly consistent with the gravity model. As far as policy parameters are concerned, China’s outward FDI was significantly restricted by some man-made barriers in host countries. According to the estimated FDI efficiency scores, China has huge outward FDI potential in countries along the Belt and Road. In general, China’s outward FDI efficiency demonstrated a consistent uptrend from the perspectives of both FDI flows and stocks over the period of 2003-2013. Although China’s outward FDI performance indicated a very uneven pattern across different countries and periods, there were no significant performance differences between the Road and Belt. Practical implications The Belt and Road initiative can be largely beneficial to China’s outward FDI, but the specific framework of cooperation should be designed on the basis of determinants of China’s outward FDI. The regional cooperation with the Road countries should mainly focus on the removal of business barriers and financial barriers. The regional cooperation with the Belt countries should mainly concern the improvement of local intellectual property protection, the reduction of local tax burden, and removal of business barriers and financial barriers. Originality/value To the authors’ best knowledge, no existing literature has specifically examined the efficiency of China’s outward FDI in the countries along the Belt and Road and its determinants.

scholarly journals Determinants of outward FDI from emerging economies

Equilibrium ◽  
2019 ◽  
Vol 14 (2) ◽  
pp. 209-231 ◽  
Author(s):  
Andrzej Cieślik ◽  
Giang Hien Tran
Keyword(s):  
Emerging Economies ◽  
Multinational Enterprise ◽  
Value Added ◽  
Likelihood Estimation ◽  
Main Stream ◽  
Outward Fdi ◽  
Host Countries ◽  
Asian Tigers ◽  
1960S And 1970S ◽  
The 1960S

Research background: The last four decades have witnessed an upsurge of multi-nationals from emerging markets alongside a narrowed gap in growth prospects between developed and emerging economies. UNCTAD statistics show that FDI flows from emerging economies have gone steady since 1980 and occupied more than one fifth of global FDI stock in 2015. Japan led the reverse FDI trend when it started to invest abroad in the 1960s and 1970s. Two decades later, in the 1980s-1990s, the reverse FDI trend was continued by so-called Asian tigers, then recently by those rapidly-industrializing economies in Southeast Asia as well as China and India in East and South Asia. Purpose of the article: The main goal of this paper is to contribute empirically to the study of the determinants of FDI outflows from emerging economies. Methods: In order to derive empirically testable hypotheses this paper refers to theoretical Knowledge-Capital model developed by Markusen (2002). The model is estimated using the Poisson-Pseudo Maximum Likelihood estimation technique. The specific research hypotheses derived from the theory are verified using a panel dataset of 38 home emerging countries and 134 host countries over the period 2001–2012. Findings & Value added: In this paper, we distinguish between horizontal and vertical reasons for FDI. Our estimation results support the hypothesis that main-stream theory of multinational enterprise can explain FDI flows from emerging economies, implying the significant roles of total market size, skilled-labor abundance, investment cost, trade cost as well as geographical distance between two countries.

Nobody Hates Money

2020 ◽  
pp. 62-87
Author(s):  
Luke Patey
Keyword(s):  
Global Strategy ◽  
Transport Infrastructure ◽  
Host Countries ◽  
Authoritarian State ◽  
Environmental Consequences ◽  
Long Run ◽  
Belt And Road ◽  
Foreign Governments ◽  
The One ◽  
The Belt And Road

China is already a global builder of infrastructure. Under President Xi Jinping’s signature foreign policy, the Belt and Road Initiative, China intends to take this activity to another level with a $1 trillion global strategy to finance, build, and connect new transport infrastructure, industrial corridors, and trade routes from China to Central Asia, the Middle East, Africa, and Europe. But China’s grand plan requires political acceptance from foreign governments and societies over the long run. Before the Belt and Road, Latin America was one of the main destinations for Chinese infrastructure loans overseas. Argentina is an early story of the Belt and Road facing local pushback. It is a microcosm for how China, a one-party authoritarian state, is reacting to democratic political change and democracy endangering its interests overseas. The one-sided economic conditions of China’s loans held important political, social, and environmental consequences for host countries that over time swing back against Chinese interests.

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