Geopolitics, Nationalism, and Foreign Direct Investment: Perceptions of the China Threat and American Public Attitudes toward Chinese FDI

2019 ◽  
Vol 12 (4) ◽  
pp. 495-518
Author(s):  
Ka Zeng ◽  
Xiaojun Li

Abstract The rapid increase in recent years of Chinese outbound foreign direct investment (FDI) has prompted growing scholarly interest in its economic and political implications for host countries. However, relatively little attention has been paid to how concerns over the rise of China may shape public attitudes towards such investment. This article tests the link between threat perception and preferences for FDI in the United States. We argue that, due to heightened geopolitical concerns and nationalism, perceptions of the China threat negatively affect how the American public views the impact of incoming Chinese FDI. Using a survey experiment, we show that respondents are indeed less likely to support Chinese FDI when primed with information that highlights the security and economic threats posed by China than when they receive no such priming. Furthermore, causal mediation analyses reveal that the treatment effects of security and economic threats are mediated by respondents’ concerns about the challenges that Chinese FDI poses to national security as well as to American economy.

2014 ◽  
Vol 41 (1) ◽  
pp. 60-75
Author(s):  
Tomasz M. Napiórkowski

Abstract The aim of this research is to asses the hypothesis that foreign direct investment (FDI) and international trade have had a positive impact on innovation in one of the most significant economies in the world, the United States (U.S.). To do so, the author used annual data from 1995 to 2010 to build a set of econometric models. In each model, 11 in total) the number of patent applications by U.S. residents is regressed on inward FDI stock, exports and imports of the economy as a collective, and in each of the 10 SITC groups separately. Although the topic of FDI is widely covered in the literature, there are still disagreements when it comes to the impact of foreign direct investment on the host economy [McGrattan, 2011]. To partially address this gap, this research approaches the host economy not only as an aggregate, but also as a sum of its components (i.e., SITC groups), which to the knowledge of this author has not yet been done on the innovation-FDI-trade plane, especially for the U.S. Unfortunately, the study suffers from the lack of available data. For example, the number of patents and other used variables is reported in the aggregate and not for each SITC groups (e.g., trade). As a result, our conclusions regarding exports and imports in a specific SITC category (and the total) impact innovation in the U.S. is reported in the aggregate. General notions found in the literature are first shown and discussed. Second, the dynamics of innovation, trade and inward FDI stock in the U.S. are presented. Third, the main portion of the work, i.e. the econometric study, takes place, leading to several policy applications and conclusions.


Author(s):  
Yusheng Kong ◽  
Sampson Agyapong Atuahene ◽  
Geoffrey Bentum-Mican ◽  
Abigail Konadu Aboagye

This paper aims to research whether there is link between FDI inflows and Economic growth in the Republic of Seychelles Island. The ordinary least square results obtained shows that in the impact of FDI inflows on economic growth is low. Small Island Developing States attracts less FDI inflow because they are limited to few resources that attracts overseas firms which results in retarded development. The research lighted that impact of foreign direct investment on host countries does not only depend on the quality and quantity of the FDI inflows but some other variables such as the internal policies and the management skills, market structures, economic trends among others.


Author(s):  
E. Nur Ozkan-Gunay ◽  
Yusuf Cukurcayir

This chapter investigates the spillover effects of Foreign Direct Investment (FDI) on innovation capability in four competing emerging economies in the district of Eastern Europe, the Czech Republic, Hungary, Poland, and Turkey, for the period 1995-2008. Panel data models are employed to test two competing hypotheses regarding the impact of FDI on innovation capability: it may improve the innovation capability of host countries via spillover channels, or may lead to the crowding-out effect through the importation of technologies via joint ventures. The empirical evidence corroborates that FDI inflows generate spillover effects on domestic innovation capability in competing emerging countries, supporting the hypothesis that inward FDI brings knowledge spillovers, new technologies, and products into the host country and promotes the innovation capability of domestic firms. In addition, the level of human capital stock and qualified researchers play a crucial role in stimulating innovative capability and technological progress.


2019 ◽  
Vol 78 (4) ◽  
pp. 789-808
Author(s):  
Jeremy E. Taylor

Drawing on archival sources in Britain, Singapore, Malaysia, and the United States, this article explores late-colonial anxieties about the influence of Chinese nationalism in Malaya (and especially among students in Chinese-medium schools) in the lead up to self-government in 1957. It demonstrates that the colonial fear of communism in Malaya was not always synonymous with the fear of cultural influence from “new China” and that the “rise of China” in the mid-1950s was viewed as a challenge to colonially sanctioned programs for “Malayanization.” More importantly, in exploring some of the ways in which the colonial state mobilized anti-communist cultural workers from Hong Kong to help counter the perceived threat from China, the article argues that more focus should be placed on the role of colonial agency in shaping “Sinophone” cultural expression in Southeast Asia during this period.


2021 ◽  
Vol 71 (S1) ◽  
pp. 73-92

Abstract The immediate effects of COVID-19 on the global flows of foreign direct investment (FDI) were devastating, resulting in a large drop. Flows to the Visegrad countries were also affected but less than the world average. The fall in FDI was the result of underlying trends that started before the pandemic but accentuated by the latter, creating a “perfect storm”. These secular trends include the digitalisation of production and the birth of Industry 4.0, resulting in more asset-light international production and reorganisations of company networks, the sustainability imperative, making the impact of FDI more relevant than its quantity, and a slowdown in the liberalisation of the policy framework for FDI both in individual countries and at the multilateral level. The recovery of FDI from the shock of 2020 is expected to be long and it will be impossible to return to the pre-pandemic structural and geographical patterns. Building resilience and diversification of production at the expense of the search for the lowest-cost locations will be the top priorities of investors, forcing the host countries to revise their investment promotion strategies focused on cost reduction. In the Visegrad countries, the model based on low labour costs will sooner or later reach its limits.


2020 ◽  
Vol 14 (1) ◽  
pp. 44-53
Author(s):  
S. V. Kazantsev

The volume and dynamics of foreign investments are formed under the influence of many conditions and circumstances. The author of this article examines the impact of one class of factors that determine the dynamics and geographical structure of Russia’s foreign direct investment inflows outflows. These are anti-Russian sanctions imposed by a group of States in 2014 to isolate the Russian Federation in the field of politics, finance and economy, science and technology, information and culture. For these countries, Russia is not a priority investment target. The share of the Russian Federation varied from two to five per cent, and rarely exceeded 10 per cent of the total volume of these countries foreign direct investment net outflows in 2007–2018. The author presented in this article the positive and negative aspects of foreign direct investment, their dynamics before and after the imposition of sanctions. In particular, the author shows that the reduction in the foreign direct investment net inflows from Russia to the sanctioning countries was less significant for the leading EU States — Germany, France and United Kingdom — than for many other sanctioning countries The cuts in Russia’s foreign direct investment net outflows had almost no impact on the United States who was the main initiator of anti-Russian sanctions.


2016 ◽  
Vol 6 (2) ◽  
pp. 186-198
Author(s):  
Siraj-ul-Hassan Reshi

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.


Author(s):  
Florina Popa

Foreign Direct Investment are among the mobilizing factors of the economic development of a country, alongside the domestic investments, being a basic support in the achievement of the development and modernization strategies. The study presents, briefly, the effects of intervening Foreign Direct Investment flows on the economy of a country, able, by the advanced experience brought, to generate a better capitalization of resources, a contribution to growth. The directions of manifesting the mechanisms of influence of Foreign Direct Investment, as well as the role that they hold for their impact, the economic environment of the host country and the policies practiced in relation to Foreign Direct Investment are taken into account. The purpose of the paper was to point out some aspects regarding the favourable impact that foreign investments could have on an economy, by the contribution to new technologies and the contribution to the productivity increase. The conclusions point to the potential of the impact of Foreign Direct Investment on development and the need for the host countries, to support some properly oriented policies, by maintaining a correlation between the volume of foreign investment flows and the development potential of a country. The research method used to carry out the study was the documentation from the foreign and domestic specialized literature, the synthesis and processing of the relevant ideas, by capturing the impact of Foreign Direct Investment in economic development.


Author(s):  
Øystein Tunsjø

This chapter discusses the impact of the rise of China on the great power structure and the gradual transformation of the international system from post-Cold War U.S. unipolarity to U.S.–China bipolarity. It develops a hedging framework for analysis and argues that whereas hedging had characterized regional diplomacy under U.S.-led unipolarity, under emerging bipolarity balancing is becoming the dominant security policy for the United States, China, and the smaller regional powers. Since 2009, this tendency toward balancing behaviour has been reflected in China's “assertive diplomacy,” in the U.S. “pivot” to East Asia, and in the security policies of the smaller regional powers. The chapter examines the traditional sources of great power capabilities to observe China's emergence as the world's second great power.


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