Outward Foreign Direct Investment, Restructuring and Performance Upgrading: Firm-level Evidence from Portugal

2020 ◽  
pp. 097215092091603
Author(s):  
Natália Barbosa
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Global Economy ◽  
Outward Foreign Direct Investment ◽  
Learning Effects ◽  
Micro Data ◽  
Outward Fdi ◽  
Export Intensity ◽  
Firm Level ◽  
And Performance

This article assesses the causal relationship between outward foreign direct investment (FDI) and various sides of firm performance, using micro data from Portuguese manufacturing firms during 2006–2014. To control for the possible endogeneity of outward FDI strategies, propensity score matching is combined with difference-in-difference approach. Our analysis shows that the learning effects for parent firms in Portuguese manufacturing depend on the underlying outward FDI strategy. The findings suggest that outward FDI could contribute to enhance firms’ productivity and their scale of operations. However, those learning effects seem to be mostly visible when firms engage in vertical outward FDI. Further, outward FDI, vertical or horizontal, appears to enhance the integration of Portuguese firms into the global economy through increased export intensity. From a managerial and policy perspective, the findings support the argument that outward FDI can indeed be at root of upgrading performance and firm’s restructuring in a small, open and peripheral economy such as Portugal.

Outward Foreign Direct Investment from India: A Comparative Analysis

2020 ◽  
pp. 355-362
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Comparative Analysis ◽  
Direct Investment ◽  
Global Economy ◽  
Multinational Enterprises ◽  
Series Data ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Data Set

The outward foreign direct investment (OFDI) is an important vehicle through which the multinational enterprises (MNEs) expand their global business. Before the initiation of the liberalisation measures, India was more of a recipient than a contributor of foreign direct investment in the global economy. led to an astounding The ongoing liberalisation measures embarked in 1991 growth of outward FDI in India. This study performed a comparative analysis of the outward FDI from India during the post-liberalisation period (1992 to 2018) using a time series data set collected from the UNCTAD. The analysis revealed that the outward FDI from India was increasing faster than the inward FDI, both in terms of FDI stock as well as FDI flows, in the post-liberalisation period. At the same time, growth of outward FDI from India was much faster than that from the developing countries and from the world; therefore, the share of India in the global outward FDI and in the outward FDI from developing countries has been steadily increasing. This reflected the growing presence of Indian multinational enterprises (MNEs) in the global economy in the post-liberalisation period.

scholarly journals Do Financing Constraints Impact Outward Foreign Direct Investment? Evidence from India

2018 ◽  
Vol 35 (1) ◽  
pp. 108-132 ◽  
Author(s):  
Subash Sasidharan ◽  
M. Padmaja
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Cash Flows ◽  
Financing Constraints ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Count Data Models ◽  
Firm Level ◽  
Instrumental Variable Probit

This study examines the role of financing constraints in explaining outward foreign direct investment (FDI) using unique firm-level panel data on Indian manufacturing during the period 2007–2014. We consider the role of both internal and external finance, and employ instrumental variable probit and Tobit models to examine financing constraints in outward FDI decisions and intensity. We find that internal finance impacts the likelihood of outward FDI. Further, using count data models, we examine financing constraints in determining strategies regarding a firm's number of affiliates abroad. Our findings reveal that firms with greater cash flows and liquidity are likely to have more foreign affiliates.

The Rise of Transnational Corporations from Developing Countries in the Second Half of the 20th Century

Istoriya ◽  
2021 ◽  
Vol 12 (11 (109)) ◽  
pp. 0
Author(s):  
Alexey Kuznetsov
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Global Economy ◽  
World Order ◽  
Developed Countries ◽  
Global South ◽  
Business Environment ◽  
Outward Foreign Direct Investment ◽  
Foreign Direct Investment Stock

The article highlights three stages of the formation of multinationals from developing countries. Although first Argentine TNCs appeared at the turn of the 19th — 20th centuries, in the majority of the Global South countries TNCs appeared in the 1960s — 1980s. With the collapse of the bipolar world order, which in many developing countries was accompanied by significant internal political and economic transformations, the second stage of foreign expansion of TNCs from the Global South began. Indeed, in 1990 they accounted for 6 % of global outward foreign direct investment stock, while the figure was 10 % by the end of 2005. We date the beginning of the third stage to the financial and economic crisis of 2007—2009, since multinationals from developing countries as a whole are more successfully overcoming the period of turbulence in the global economy. By the end of 2020, they accounted for 22 % of global outward foreign direct investment stock, and during the COVID-19 pandemic crisis they generally exported more than 50% of the capital. The modern foreign expansion of such TNCs has many reasons, differs greatly from country to country, and often differs slightly from the specifics of Western multinationals. At the same time, initially, “late internationalization” in developing countries had two main vectors — the use of new opportunities for South — South cooperation and overcoming, through the creation of subsidiaries in highly developed countries, the shortcomings of the business environment of “catching up” countries.

ANALYSING EXPORT INTENSITY OF THE SELECT ELECTRONICS FIRMS IN INDIA

2007 ◽  
Vol 11 (03) ◽  
pp. 379-396 ◽  
Author(s):  
VINNIE JAUHARI
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Direct Investment ◽  
Fold Increase ◽  
Electronics Industry ◽  
Tobit Model ◽  
Policy Implications ◽  
Export Intensity ◽  
Firm Level ◽  
Indian Electronics Industry

The second half of the 1990s has witnessed almost three-fold increase in the exports of Indian electronics industry. The study proposes a model for analysing the export intensity of 164 electronics firms in India and tests the same empirically. The Tobit model is estimated using firm level panel data for the period 2000–2005 for the electronics industry in India. The results show that both size of the firm, foreign direct investment and capital employed have played an important role in boosting exports in this sector. The study has policy implications to improve the performance of the Indian Electronics sector in India and similar other countries.

scholarly journals Emerging Economy Inward and Outward Foreign Direct Investment: A Bibliometric and Thematic Content Analysis

2021 ◽  
Author(s):  
Keilla Dayane da Silva-Oliveira ◽  
Edson Keyso de Miranda Kubo ◽  
Michael J. Morley ◽  
Rodrigo Médici Cândido
Keyword(s):  
Foreign Direct Investment ◽  
Performance Analysis ◽  
Emerging Economies ◽  
Thematic Analysis ◽  
Direct Investment ◽  
Institutional Environment ◽  
Emerging Economy ◽  
Future Research ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi

AbstractResearch examining emerging economy inward and outward foreign direct investment (FDI) flows is on a significant upward trajectory. In this bibliometric analysis covering 806 articles published between 1994 and 2019, we map key aspects of its contours. Our analysis proceeds in two sequential phases involving a performance analysis, followed by a thematic analysis. Our performance analysis unveils fundamental elements of the structure of the knowledge base. Our subsequent thematic analysis identifies three focal topics arising from identifiable shared qualities characterizing this literature. Firstly, we distinguish scholarship focused on inward FDI into emerging economies formed by two particular classes, namely ‘innovative FDI’ and ‘capital flows’. Our second theme covers outward FDI from these emerging economies and also comprises two specific classes referring to the ‘institutional environment’ and the ‘theoretical framework deployed’. Our final theme relates to an integrated body of knowledge explicating aspects of the location choice decision. Building on this analysis, we isolate a number of opportunities for future research.

scholarly journals Just Look behind the Data! Czech and Hungarian Outward Foreign Direct Investment and Multinationals

2019 ◽  
Vol 69 (S2) ◽  
pp. 73-105 ◽  
Author(s):  
Magdolna Sass ◽  
Jana Vlčková
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Transition Process ◽  
Balance Of Payments ◽  
Foreign Direct Investments ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Foreign Investors ◽  
The Czech Republic ◽  
Main Factors

There has been an increase in outward foreign direct investment (FDI) and in the number of locally-owned or controlled multinationals in the Czech Republic and Hungary. However, data problems hinder to determine accurately the underlying trends and the main factors behind the changes. Data on outward FDI contain investment realised by all locally operational firms, regardless of their ownership. We rely on newly available balance of payments manual 6 (BPM) data and on company case studies. We show that outward investment by Czech firms must be much higher than what balance of payments data show. Hungary's case is the opposite. The leading Czech and Hungarian foreign investor firms can be categorised as “virtual indirect” foreign investors: they are in majority foreign ownership, but under domestic control. The reason for this special type of firms dominating in outward foreign direct investments can be found in the privatisation technique applied in these countries during the transition process.

scholarly journals Export Structure Effect of Outward FDI of Sichuan Province of China

2018 ◽  
Vol 10 (9) ◽  
pp. 181
Author(s):  
Xiaohui Wang
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Direct Investment ◽  
Sichuan Province ◽  
Structure Effect ◽  
Sufficient Evidence ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Effect Analysis ◽  
Export Structure

This paper made an export structure effect analysis of outward foreign direct investment of Sichuan Province of China using the method of OLS and GMM with the provincial panel data of ordinary export from 2004 to 2016. The empirical results indicate that Outward Foreign Direct Investment can affect ordinary export positively both in China and in Sichuan Province. With each 1% increase of outward foreign direct investment, China’s ordinary exports increased by 0.344%, while Sichuan’s ordinary exports increased by 0.483%. Furthermore, this paper indicates that outward foreign direct investment leads to the upgrading of export structure in China. But, this paper can’t find sufficient evidence that Sichuan’s Outward Foreign Direct Investment can promote export structure.

Evolving Dimensions of Indian Outward Foreign Direct Investment

2014 ◽  
Vol 1 (2) ◽  
Author(s):  
Vandana Jain
Keyword(s):  
Foreign Direct Investment ◽  
Mergers And Acquisitions ◽  
Direct Investment ◽  
East Asian ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
South East Asian Region ◽  
East Asian Region ◽  
The Past ◽  
Emerging Trends

Post liberlisation regime of 1991, India became has become a lucrative investment avenue for overseas investors. At the same time, over the past decade or so, Indian companies have become competitive at the international level and have engaged in overseas investments and mergers and acquisitions abroad. The paper, in this perspective, attempts to highlight this emerging trends and patterns of India as an overseas investor. It presents the emerging trends and patterns of Indian Outward Foreign Direct Investment (FDI) during the post liberlisation regime, and showcases the growing significance of India as an overseas investor in the South East Asian region. The paper demonstrates an analytical overview of the evolving Outward FDI from India in terms of sectoral as well as geographical composition.

Outward Foreign Direct Investment: A Novel Dimension of China's Integration into the Regional and Global Economy

1999 ◽  
Vol 160 ◽  
pp. 856-880 ◽  
Author(s):  
Kevin G. Cai
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Global Economy ◽  
International Political Economy ◽  
Developing Economies ◽  
The United States ◽  
Future Trend ◽  
Open Door Policy ◽  
Outward Fdi ◽  
Existing Problems

It is now receiving wide attention that since the adoption of the open-door policy at the end of the 1970s China has been extremely successful in attracting foreign direct investment (FDI). Particularly, according to UNCTAD's World Investment Report 1997: Transnational Corporations, Market Structure and Competition Policy, China has become the second largest recipient of FDI in the world since 1993, after the United States. On the other hand, however, it seems less noticed that China has also become a growingly important FDI exporting country. According to UNCTAD's same report, China now ranks as one of the largest outward investors among developing economies in the 1990s. By the end of 1996, the cumulative stock of Chinese outward FDI had reached over $18 billion, next only to Hong Kong ($112 billion), Singapore ($37 billion) and Taiwan ($27 billion). Consequently, China increased its share in world-wide FDI outflows from less than 0.5 per cent until 1991 to an average of 1.3 percent in 1991–95. As China is rapidly rising as a new economic power, its deepening participation in the regional and global economy, through both inward and outward FDI as well as trade, will inevitably bring about significant implications in the international political economy. This article attempts to explore the development of Chinese outward FDI, its characteristics and motives, the outward FDI regime, the government's policies and existing problems, and the prospects for the future trend of Chinese outward FDI.

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