Chinese investment in India will grow

2018 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Content Type ◽  
Chinese Investment ◽  
Cross Border ◽  
Bilateral Relations ◽  
Chinese Companies ◽  
Border Dispute ◽  
Security Relationship

Subject Chinese investment in India. Significance China is one of the fastest-growing sources of foreign direct investment (FDI) in India. The two countries are trying to stabilise bilateral relations that deteriorated after a tense 73-day border dispute in mid-2017. Impacts Chinese companies’ demand for Mandarin-speaking manpower in India will rise. With India having launched e-business visas for Chinese nationals, cross-border business trips will increase. Delhi’s deepening security relationship with Washington, Tokyo and Canberra will prompt distrust in Beijing.

Does the origin matter? The effects of cross-border mergers and acquisitions in France

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Federico Carril-Caccia
Keyword(s):  
Foreign Direct Investment ◽  
Mergers And Acquisitions ◽  
Direct Investment ◽  
Developed Countries ◽  
Emerging Countries ◽  
Intangible Asset ◽  
Data Set ◽  
Content Type ◽  
Cross Border ◽  
The Impact

PurposeThe present article analyses the effects of cross-border mergers and acquisitions (CBM&As) on targets' total factor productivity (TFP), employment, wages and intangible-asset investment. The author investigates whether the impact of CBM&As differs depending on the origin of the investing multinational (MNE). The author distinguishes between CBM&As from European countries, other developed countries and emerging countries.Design/methodology/approachThe author makes use of a unique firm-level data set of foreign direct investment in the French manufacturing sector. The authors applies propensity score matching and difference in differences to estimate the effect of CBM&As.FindingsThe results show that the consequences of CBM&As differ strongly depending on the origin. CBM&As from European MNEs have a positive impact on TFP, wages and intangible-asset investment, and those from emerging countries seem to increase wages and intangible-asset investments. In contrast, CBM&As that originate from MNEs from other developed countries do not have a significant effect.Originality/valueThis article contributes to the growing literature on the effects of foreign direct investment that highlights the relevance of accounting for the MNEs' origin. In particular, it is the first to address the impact of emerging-country MNEs' CBM&As in Europe.

Sino-substitution: Chinese foreign direct investment in Zambia

2014 ◽  
Vol 7 (2) ◽  
pp. 90-109 ◽  
Author(s):  
Stuart John Barton
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
English Language ◽  
Primary Data ◽  
Special Economic Zones ◽  
Content Type ◽  
Chinese Investment ◽  
Elite Interviews ◽  
Chinese Foreign Direct Investment ◽  
Economic Zones

Purpose – This paper aims to establish the level (if any) of Chinese State influence on setting the terms of Foreign Direct Investment in Zambia, specifically their influence on improving access for Chinese investors through the establishment of Special Economic Zones. Design/methodology/approach – The paper presents a process trace to test primary archival data and elite interviews against growing academic and popular “China in Africa” literature. Findings – After examining primary data, existing academic and popular literature is found to poorly describe China’s economic influence in Zambia, primarily by largely speculating on non-evident coercive investment practices. Instead, the paper concludes that similarities between new Chinese investment and retreating Western sources in Africa can better be described as “Sino-Substitution”. Research limitations/implications – The primary research has focused on English language Zambian sources; access to further Chinese sources would improve the breadth of the study. Practical implications – The study has found the terms of new Chinese investment in Zambia to be far more calculated, consensual and symbiotic than described in the existing literature. This more balanced view of Chinese investment is important if other foreign investors are to retain or regain competitive advantage in the region. Originality/value – No existing research has traced empirically the process through which the Zambian Government developed Special Economic Zones into the country’s largest investment vehicle, or how Chinese investment came to dominant capital flows within them. As investment in these zones grows, a better understanding of the Zambia–China relationship should help other investors compete, and improve Zambia’s access to capital.

Chinese investment will fuel Israeli security concerns

2018 ◽  
Keyword(s):  
Belt And Road Initiative ◽  
The West ◽  
Content Type ◽  
Chinese Investment ◽  
Technology Investment ◽  
Chinese Companies ◽  
Israeli Government ◽  
Belt And Road ◽  
Security Relationship ◽  
New Infrastructure

Significance Chinese companies have made several recent investments in Israeli infrastructure projects, and technology has also emerged as a focus of a growing bilateral relationship as China seeks to tap into Israeli innovation. For its part, the Israeli government hopes to capitalise on the technology partnership to strengthen its relationship with Beijing and diversify ties away from economic and political reliance on the West. Impacts Israel is part of China’s Belt and Road Initiative, and Chinese companies will pursue new infrastructure opportunities where possible. The bilateral technology relationship is critical because China’s trade with and non-technology investment in Israel are relatively small. The security relationship with Washington will endure, and may restrict Chinese involvement in Israel.

EU scrutiny of Chinese investment will increase

2018 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Investment Decisions ◽  
European Council ◽  
Content Type ◽  
Chinese Investment ◽  
Exchange Of Information ◽  
European Parliament Elections ◽  
The Eu

Subject Investment screening in the EU. Significance The European Council is likely to vote in the autumn on a Commission proposal to introduce a foreign direct investment (FDI) screening mechanism in the EU. Although member states are divided on this issue, legislation is expected to be adopted by the end of the year. Impacts The proposed mechanism could complicate EU-China relations. It would enable more coordination and exchange of information on national foreign investment decisions. If the mechanism is not adopted by the end of the year, it could be significantly delayed due to the May 2019 European Parliament elections.

An empirical analysis of Chinese outward foreign direct investment in Africa

2015 ◽  
Vol 8 (1) ◽  
pp. 4-19 ◽  
Author(s):  
Andrew G. Ross
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Design Methodology ◽  
Regulatory Environment ◽  
Panel Data Models ◽  
Outward Foreign Direct Investment ◽  
African Countries ◽  
Content Type ◽  
Chinese Investment ◽  
African Perspective

Purpose – The purpose of this paper is to identify and analyse determinants of Chinese outward foreign direct investment (OFDI) into a number of African countries for the period 2003-2012. Design/methodology/approach – A series of panel data models are used to estimate the determinants of Chinese OFDI into eight African countries: Nigeria, South Africa, Zambia, Ghana, Kenya, Algeria, Egypt and the Sudan. Findings – Results highlighted that Chinese investment in African countries is driven by access to natural resources, and factors related to infrastructure quality and the regulatory environment enforced by host governments. Originality/value – To the best of the authors’ knowledge, this is one of the first papers to identify empirical determinants of Chinese OFDI in Africa and it contributes from two perspectives. Firstly, it identifies drivers behind Chinese OFDI, but also importantly from the African perspective helps understand the reasons that attract investment from one of the world’s largest investors into one of the world’s poorest regions, given the emphasis that is placed on foreign direct investment today as an instrument of growth and development.

China's Latin America funding brings calculated risk

2015 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Direct Investment ◽  
Financial Flows ◽  
Content Type ◽  
Chinese Investment ◽  
Political Dynamics ◽  
The Past ◽  
Political Risks ◽  
Calculated Risk

Subject Chinese engagement in Latin America. Significance While Chinese investment in Latin America has grown rapidly over the past decade, most financial flows are sovereign loans, mainly to Argentina, Ecuador and Venezuela. Foreign direct investment (FDI), by contrast, remains comparatively small. In both cases, most financing has targeted natural resource sectors, raising concerns over excessive Chinese control. China's objectives are diverse, varying across sectors and countries, and increasingly attuned to local political dynamics, as well as the risks inherent in some of its regional deals. Impacts Loans will continue to outstrip FDI in China's financing for the region. Investor-unfriendly policies will increase some countries' dependence on Chinese finance. However, Chinese lending will not be immune to financial and political risks.

Rigorous research will boost cross-border investment

2018 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Multinational Corporations ◽  
Direct Investment ◽  
Political Risk ◽  
Content Type ◽  
Sovereign Bond ◽  
Cross Border ◽  
Rigorous Research ◽  
Expropriation Risk ◽  
Bond Spreads

Subject Measuring political risk Significance Research into measuring and forecasting political risk is becoming more sophisticated, revealing that assessment of expropriation risk dominates political risk considerations ahead of foreign direct investment (FDI) decisions. Sovereign bond spreads, which are typically used to measure political risk, often instead overstate risks, as they incorporate many other factors. Impacts More sophisticated political risk calculations by multinational corporations (MNCs) from emerging markets will increase FDI flows. When countries consider FDI, they incorporate the risks present in their own countries as well as those in the destination. Expropriation risks loom largest; if these can be better measured, a larger and more geographically diverse set of FDI flows is possible.

Chinese investment in United States will not recover

2019 ◽  
Keyword(s):  
United States ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developed Countries ◽  
The United States ◽  
High Tech ◽  
Content Type ◽  
Chinese Investment ◽  
Investment Opportunities ◽  
Business Opportunities

Subject Chinese investment in the United States. Significance Chinese investment in the United States has suffered a double blow from deteriorating US-China relations and restrictions put in place by China’s own government. Foreign direct investment (FDI) flows increased rapidly until 2016, making China an important source of FDI for the United States. Since then they have sharply declined. Impacts Chinese companies will look more actively for investment opportunities in other developed countries, especially in Europe. Washington is likely to press its allies to restrict FDI from China and to coordinate policies, citing security concerns. US businesses will be negatively affected by a weaker inflow of ‘China money’. US firms will find it harder to establish links with China, which may cause them to miss business opportunities there. China’s government will provide support for Chinese firms to acquire US high-tech firms.

Foreign Direct Investment

2017 ◽  
Author(s):  
Yilmaz Akyüz
Keyword(s):  
Foreign Direct Investment ◽  
Mergers And Acquisitions ◽  
Financial Markets ◽  
Foreign Exchange ◽  
Direct Investment ◽  
Balance Of Payments ◽  
Productive Capacity ◽  
Cross Border ◽  
Direct Contribution ◽  
High Profit

Recent years have also seen increased openness of EDEs to foreign direct investment (FDI) in search for faster growth and greater stability. However, FDI is one of the most ambiguous and least understood concepts in international economics. Common debate is confounded by several myths regarding its nature and impact. It is often portrayed as a stable, cross-border flow of capital that adds to productive capacity and meets foreign exchange shortfalls. However, the reality is far more complex. FDI does not always involve inflows of financial or real capital. Greenfield investment, unlike mergers and acquisitions, makes a direct contribution to productive capacity, but can crowd out domestic investors. FDI can induce significant instability in currency and financial markets. Its immediate contribution to balance-of-payments may be positive, but its longer-term impact is often negative because of high-profit remittances and import contents.

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