Introduction

2009 ◽  
Vol 13 (3) ◽  
pp. 193-198 ◽  
Author(s):  
Christoph Dörrenbächer ◽  
Florian Becker-Ritterspach
Keyword(s):  
Developing Countries ◽  
Multinational Corporations ◽  
Special Issue ◽  
Firm Level ◽  
Economic Implications ◽  
Cross Border ◽  
The Cross ◽  
Political Dimensions ◽  
The Impact

Intrafirm competition, production relocation and outsourcing define crucial ways of organising and reorganising the cross-border operations of multinational corporations. What is more: these organisational activities put severe pressure on established economic coordination and governance both in developed as well as in developing countries. However, despite their organisational, political and economic salience, rather little is known about these processes and in particular about their socio-political dimensions. To this end, the contributions of this special issue aim at exploring, first, who the relevant actors are, what their interests are and how their strategies can be captured in intrafirm competition, production relocation and outsourcing. Second, the contributions discuss the wider socio-economic implications of firm-level processes by discussing, for example, the impact of outsourcing and relocation on employment fragmentation. Finally, the importance of public discourses is highlighted with regard to their role in both legitimating and promoting intrafirm competition, production relocation and outsourcing.

R&D in the periphery? Foreign direct investment, innovation, and institutional quality in developing countries

2013 ◽  
Vol 15 (1) ◽  
pp. 1-32 ◽  
Author(s):  
Patrick J.W. Egan
Keyword(s):  
Developing Countries ◽  
Multinational Corporations ◽  
Political Institutions ◽  
Multinational Firms ◽  
Institutional Quality ◽  
Socioeconomic Indicators ◽  
Host Countries ◽  
Firm Level ◽  
Education Levels ◽  
The Impact

This paper considers the relationship between assessments of institutional quality in developing countries and the innovative activities of multinational corporations. Firm entry mode literature has established links between domestic institutions and ownership equity patterns among multinationals, but institutionalist analyses have not adequately addressed the types of activities pursued by multinational firms. I argue that in addition to various socioeconomic indicators, the quality of domestic political institutions in developing countries is an important determinant of local innovative activity. I argue that institutional quality in host countries reinforces consistent patterns of interaction between states and firms, leading to reduced risk of technological expropriation and other undesirable outcomes for firms. I test this argument by examining the impact of institutional assessments, carried out by firms themselves and by outside observers, on R&D effort among multinationals, using firm-level surveys conducted in developing countries between 2002 and 2005. The multilevel empirical analysis suggests that multinational firms are likely to both locate R&D activities and pursue them intensively in developing countries with well-regarded institutions, and that the impact of institutional variables is more significant than other likely predictors, such as education levels in host countries.

Firm-Level Determinants of Foreign Investment and M&A Activity

2020 ◽  
pp. 1676-1705
Author(s):  
Mine Uğurlu
Keyword(s):  
Economic Growth ◽  
Foreign Investment ◽  
Economies Of Scale ◽  
Foreign Direct Investments ◽  
International Expansion ◽  
Firm Level ◽  
Policy Makers ◽  
Economic Implications ◽  
Cross Border ◽  
Greenfield Investments

The last decade is marked with acceleration of mergers, corporate restructuring and governance activities. M&A activity has been driven by factors such as technological change, globalization, free trade, deregulation, attempts to attain economies of scale, rise in entrepreneurship, and economic growth. Corporations need to adjust to the change in the environment and expand their markets to achieve growth and protection against volatile economic conditions. Firms can achieve international expansion through foreign direct investments (FDIs) which can take the form of cross-border acquisitions (brownfield investments) and Greenfield investments. This chapter covers an overview of the literature on the determinants of FDI forms of entry, and M&A activity followed with an empirical investigation of the firm-level determinants of foreign investment in Turkey with emphasis on cross-border acquisitions and Greenfield investments. Summary of the findings is followed with the economic implications of forms of FDI entry. The concluding remarks cover the implications of the results for policy makers.

scholarly journals You Can't Count on Me: The Impact of Electricity Unreliability on Productivity

2017 ◽  
Vol 46 (3) ◽  
pp. 579-602
Author(s):  
Sharon Poczter
Keyword(s):  
Developing Countries ◽  
Industrial Production ◽  
Solar Irradiance ◽  
Electricity Demand ◽  
District Level ◽  
Firm Level ◽  
The Impact ◽  
Electricity Provision ◽  
Over Time

While access to reliable electricity can significantly constrain industrial production, little is known as to how unreliability impacts firm level productivity. This is a particularly salient issue for firms in developing countries, where electricity provision is still unreliable and self-generation is costly. This paper analyzes the impact of electricity provision on productivity, instrumenting for electricity demand with district level solar irradiance. Results indicate that firms exhibit decreasing productivity in the initial stages of electricity adoption that decreases over time. Furthermore, I find that unreliability negatively impacts productivity initially and over time, and this effect is larger for smaller firms.

scholarly journals An Empirical Study on the Trade Impact of Cross border E-commerce on ASEAN and China under the Framework of RECP

2021 ◽  
Vol 275 ◽  
pp. 01039
Author(s):  
Guanhui Wang ◽  
Zengyu Cao
Keyword(s):  
Geographical Location ◽  
Economic Factor ◽  
The Internet ◽  
Global Trade ◽  
Trade Volume ◽  
Cross Border ◽  
The Cross ◽  
Asean Countries ◽  
Trade Gravity Model ◽  
The Impact

As an indispensable part of future global trade, the cross-border e-commerce will change the form and volume of the current global trade with globalization. Taking China and ten ASEAN countries as the research object, this paper empirically tests whether the cross-border e-commerce under the RCEP framework will affect the trade scale between China and ten ASEAN countries through the trade gravity model. As the research suggests, the impact of GDP and the Internet popularity on the trade scale of different ASEAN countries and China is not the same. Malaysia, Vietnam, Singapore, Thailand and other countries have larger trade volume with China due to economic factor, Internet, geographical location and other factors, while Brunei and Laos, which are closer to China with smaller economic volume, have more obvious shortcomings and are less related to the trade with China.

Firm-Level Determinants of Foreign Investment and M&A Activity

2016 ◽  
pp. 265-292
Author(s):  
Mine Uğurlu
Keyword(s):  
Economic Growth ◽  
Foreign Investment ◽  
Economies Of Scale ◽  
Foreign Direct Investments ◽  
International Expansion ◽  
Firm Level ◽  
Policy Makers ◽  
Economic Implications ◽  
Cross Border ◽  
Greenfield Investments

The last decade is marked with acceleration of mergers, corporate restructuring and governance activities. M&A activity has been driven by factors such as technological change, globalization, free trade, deregulation, attempts to attain economies of scale, rise in entrepreneurship, and economic growth. Corporations need to adjust to the change in the environment and expand their markets to achieve growth and protection against volatile economic conditions. Firms can achieve international expansion through foreign direct investments (FDIs) which can take the form of cross-border acquisitions (brownfield investments) and Greenfield investments. This chapter covers an overview of the literature on the determinants of FDI forms of entry, and M&A activity followed with an empirical investigation of the firm-level determinants of foreign investment in Turkey with emphasis on cross-border acquisitions and Greenfield investments. Summary of the findings is followed with the economic implications of forms of FDI entry. The concluding remarks cover the implications of the results for policy makers.

Innovation-Intensive FDI and Host Country Institutions

2018 ◽  
Author(s):  
Patrick J. W. Egan
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Host Country ◽  
Institutional Quality ◽  
Entry Modes ◽  
Host Countries ◽  
Firm Level ◽  
Investment Models ◽  
The Impact ◽  
Innovation Outcomes

This chapter moves beyond firm level attributes and economic motivations to consider the impact of host country institutions on investment models of multinationals in developing countries. It adopts a comparative institutionalist perspective, and utilizes country and firm level variables to measure governance. These measures are then employed to predict innovation outcomes. This chapter demonstrates that host country institutions affect the likelihood of local innovation taking place, and its intensity. A variety of measures of institutional coherence are developed, and address such diverse concepts as intellectual property protection, corruption, democracy, and bureaucratic quality. In addition, firm surveys are used to convey firm perceptions of institutional quality in host countries. The chapter includes a discussion of the literature on firm entry modes, and considers how other host country attributes, such as education and human capital, may influence innovation outcomes alongside institutions.

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