The role of labour unrest and skilled labour on outward foreign direct investment in Taiwan, Republic of China, ROC

2021 ◽  
pp. 103530462110669
Author(s):  
Yu Cheng Lai ◽  
Santanu Sarkar
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Industrial Relations ◽  
Series Data ◽  
Outward Foreign Direct Investment ◽  
Skilled Workers ◽  
Estimation Model ◽  
Labour Costs ◽  
Labour Standards

This paper builds an estimation model to test whether improved labour standards necessarily lead firms to send work offshore to countries with lower wages and fewer employment protections; or improved labour standards influence the labour market, where with time, firms attract more skilled workers, which help deter outward foreign direct investment (FDI). When more firms comply with improved labour standards, the industrial relations climate also improves as non-compliance usually causes labour unrest. Using a model built on pooled cross-sectional time-series data from 2008–17, we studied the role of changes in labour unrest and the percentage of skilled workers in the labour force in predicting outward FDI in Taiwan. Per our estimation model, we found the percentage of skilled workers steadily increased as Taiwan maintained improved labour standards. The increase in skilled workers also increased labour costs making it challenging for firms to stay onshore. However, skilled workers helped firms improve productivity, which justified increased labour costs. As a result, firms in Taiwan that complied with labour standards found it less challenging to pay higher wages and stayed onshore. JEL Code: J28, J38, F66

scholarly journals Nonlinear Effects of Urbanization and Outward Foreign Direct Investment on Carbon Emissions in China

2018 ◽  
Vol 10 (12) ◽  
pp. 4411 ◽  
Author(s):  
Ming Yi ◽  
Mengqi Gong ◽  
Ting Wu ◽  
Yue Wang
Keyword(s):  
Foreign Direct Investment ◽  
Carbon Emissions ◽  
Direct Investment ◽  
Time Series Data ◽  
Series Data ◽  
Outward Foreign Direct Investment ◽  
Low Carbon ◽  
Markov Switching Model ◽  
Causality Test ◽  
High Emission

It is essential to explore the relationship between China’s urbanization, outward foreign direct investment, and carbon emissions, in order to better understand China’s carbon emissions reduction target. To this end, the nonlinear Granger causality test and Markov-switching model are applied to analyze the structural effects of urbanization and outward foreign direct investment on domestic emissions, on the basis of time series data from 1984–2016. The results show that the promotion effect of outward foreign direct investment on carbon emissions is increased from low-carbon regime to high-emission regime. Specifically, 1% increase in OFDI leads to a rise in carbon emissions by 0.064% and 0.112% under the former and latter regime respectively. Unlike the effect trend of outward foreign direct investment, the effect of urbanization on carbon emissions is decreased from a high-emission regime (5.221% rise in carbon emissions with 1% increase in the level of urbanization) to a low-carbon regime (3.133% rise in carbon emissions with 1% increase in the level of urbanization).

Light Manufacturing in Ethiopia

2019 ◽  
pp. 703-720
Author(s):  
Cornelia Staritz, PhD ◽  
Lindsay Whitfield, PhD
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
The United States ◽  
Economic Transformation ◽  
Industrial Policies ◽  
Export Industry ◽  
Export Sector ◽  
Labour Costs ◽  
Industrial Parks

The apparel export industry in Ethiopia has increased significantly since the 2000s. Apparel exports emerged due to low labour costs and preferential trade agreements with the United States and European Union, but more importantly to proactive government industrial policies and the decisions of US and EU buyers and core suppliers to invest in or source from Ethiopia. Foreign direct investment has played an important role in the growth of the apparel export industry, but there exist also locally owned export firms. Sector-specific industrial policies are divided into three phases: incentivizing local investment in apparel exporting; addressing constraints facing local export firms and attracting foreign direct investment; and promoting foreign and local investment within specialized industrial parks. This chapter provides an overview of the development of the apparel export sector in Ethiopia, highlighting the role of industrial policy and the performance of locally owned firms given their importance in economic transformation.

Technological innovation policy and Chinese heterogeneity enterprises' outward foreign direct investment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jinjing Zhao ◽  
Jongchul Lee
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Innovation Policy ◽  
Local Economy ◽  
Outward Foreign Direct Investment ◽  
Central State ◽  
Chinese Enterprises ◽  
Content Type ◽  
Privately Owned

PurposeThe study aims to analyze the role of the Made in China 2025 (MIC2025) initiative in China's Outward Foreign Direct Investment (OFDI) and the factors affecting the success or failure of Chinese enterprises' OFDI from the perspectives of the heterogeneity of home country enterprises.Design/methodology/approachBased on data on China's OFDI obtained from the China Global Investment Tracker (CGIT), the study uses the difference-in-differences model to analyze 2,670 completed OFDI deals and 211 failed OFDI deals by Chinese enterprises, from 2009 to 2018.FindingsThe study found that the effect of MIC2025 on Chinese enterprises' OFDI varies according to the ownership structure of the home country's enterprises. For successful OFDI, MIC2025 significantly impacted central state-owned enterprises (CSOEs), while it did not significantly influence local SOEs and privately owned enterprises. For failed OFDI, the MIC2025 plan only increased the failure of CSOEs' OFDI for the technology-seeking motivation in high-income host countries. Further, the investment options of local SOEs differ from those of CSOEs. Considering their aim to drive the local economy and seek profits, they are more similar to those of privately owned enterprises.Originality/valueThis study used a new database (i.e. the CGIT) to analyze Chinese enterprises' OFDI. It discussed the role of MIC2025 for different enterprises from the perspectives of successful and failed OFDI. It thus provided a new basis for analyzing policy affecting the OFDI of Chinese enterprises.

The Energy Consumption-Environmental Quality Nexus in BRICS Countries: The Role of Outward Foreign Direct Investment (OFDI)

2021 ◽  
Author(s):  
Saileja Mohanty ◽  
Narayan Sethi
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Environmental Quality ◽  
Direct Investment ◽  
Early Stage ◽  
Outward Foreign Direct Investment ◽  
Stage Of Development ◽  
Long Run

Abstract This paper examines the role of outward foreign direct investment (OFDI) on energy consumption and environmental quality in BRICS from 1990 to 2019. We use cross-sectional dependence (CSD) and the Pesaran-Yamagata slope homogeneity for the diagnostic test. After confirming the diagnosis test, we employ CIPS and CADF second generation panel unit root test, which confirms that all elements are stationary at first difference. The Pooled Mean Group (PMG), Westerlund cointegration, two-step GMM, panel FMOLS and DOLS model have been used to determine the short term and long-term association among the variables. The cointegration and PMG results confirm that the short-run and long-run association exists among the considered variables. The GMM and DOLS results reveal that developing countries produced environmental pollution at the early stage of development and checked in the long run. The empirical results hold up the EKC hypothesis, which implies that OFDI and energy consumption help expand greener technology to host countries' environmental improvement in the long run and confirm that an inverted U-shaped linkage exists. Hence, the study suggests that developing countries should pay more attention to sustainable development and technological development that encourages more eco-friendly and environment-friendly technology. To frame the profitable strategies, governments of emerging countries should inspire public-private partnerships to circulate the environmental consciousness, guideline for energy efficiency, and generate a pollution-free environment.

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