The Relationship Between Inward Foreign Direct Investment and the Performance of Domestically‐owned Chinese Manufacturing Industry

2004 ◽  
Vol 12 (3) ◽  
pp. 23-40 ◽  
Author(s):  
Peter J. Buckley ◽  
Jeremy Clegg ◽  
Chengqi Wang
Author(s):  
Frederick Lehmann ◽  
Ana Teresa Tavares-Lehmann

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.


2013 ◽  
Vol 03 (04) ◽  
pp. 39-56
Author(s):  
Adejumo Akintoye Victor

The study examined the relationship between foreign direct investment and the value added to the manufacturing industry in Nigeria, between the period 1970 and 2009. In view of the development and industrialising desires of Nigeria, as well as the foreign aid received in form of private investments, it is pertinent to examine the effect the presence of multinationals has had in shaping the Nigerian manufacturing industry. Using the autoregressive lag distribution technique to determine the relationship between foreign direct investment and manufacturing value added, it was discovered that in the long-run, foreign direct investments have had a negative effect on the manufacturing sub-sector in Nigeria.


Author(s):  
Harun Bal ◽  
Erhan İşcan ◽  
Ahmet Kardaşlar

This study examines the relation between Foreign Direct Investment (FDI) and industrialization by analysing 6 different sector groups in Turkey using panel data of 2004-2012 period. The effect of labor, domestic and foreign investment on industrial output of the 6 sector which are Agriculture, Forestry and Fisheries; Mining and Quarrying; Manufacturing Industry; Electricity; Construction; Transportation and Storage Activities, has been analysed. The results show that there is a meaningful and positive relationship between sectoral employment and FDI with sectoral production for all sectors.


2014 ◽  
Vol 17 (3) ◽  
pp. 319-335 ◽  
Author(s):  
Martha SI Wentzel ◽  
Maxi Steyn

South Africa needs to increase its inward foreign direct investment in order to achieve economic growth. The purpose of this article is to explore which intervention could be launched in the short term to enhance the country's attractiveness for foreign investors. The findings of the literature review demonstrated that incentives, as a determinant of investment, are the short-term intervention with the most significant potential to attract additional foreign direct investment. A comparative study, which provided insight into the incentives that are currently offered to the manufacturing sectors of three countries (South Africa, Malaysia and Singapore), assisted in identifying two additional incentives that the South African government could introduce and three existing incentives that could be amended. The introduction or modification of these incentives could ensure that South Africa has a competitive advantage to attract investment from foreign investors and thereby increase South Africa's inward foreign direct investment in the manufacturing industry.


2018 ◽  
Vol 09 (01n02) ◽  
pp. 1850005
Author(s):  
Vera Silva ◽  
Rosa Forte

Exports and foreign direct investment (FDI) are two alternative foreign markets entry modes. From a theoretical point of view, there are arguments which support two different relationships between FDI and exports: complementary and substitution. Most empirical studies, however, have concluded with a complementary relationship. Since existing studies at more disaggregated levels have focused solely on the manufacturing industry, this paper aims at studying the relationship between FDI and home country exports based on a large sample of Portuguese firms, belonging to manufacturing and services, for the period 2006–2012. Using a fixed-effects model, results obtained suggest that the control of heterogeneity between firms is essential to clarify the relationship between FDI and exports and this has been a factor often overlooked.


2020 ◽  
pp. 097215092092077
Author(s):  
Marco Túlio Dinali Viglioni ◽  
Cristina Lelis Leal Calegario

The inward foreign direct investment (FDI) has been emphasized in the literature, and although the benefits related to innovation are known, there is not much information about their effects on emerging economies. This study investigates how local domestic factors such as research and development (R&D), exports and foreign technology acquisition moderate with inward FDI to improve the innovation performance. The empirical findings from a generalized method of moments (GMM) estimator suggest, at short term, that the FDI has a positive effect in the Brazilian manufacturing industry. As a complementary effect, there is an interaction between FDI inflows and exports, increasing the innovation performance. However, improvements in R&D-related FDI is not observed. For this reason, the results suggest FDI-related exports could indicate a mere product adaptation to the foreign market. There is a predominance in import substitution of machines, equipment and software and no evidence of internal R&D investments or R&D-related FDI. Our results suggest managerial and policy implications, once it was observed the high-technology intensity industry sectors show better innovation performance than medium- and low-technology industries. Policymakers should implement better policies to encourage more R&D-related FDI to decrease import substitution and improve the local innovation performance to strengthen the local industry R&D investments.


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