Supply chain capability of countries and its effect on foreign direct investment: a fuzzy-set analysis

Author(s):  
Arshad Alam ◽  
Prabir K. Bagchi
2017 ◽  
Vol 20 (s1) ◽  
pp. 1-11
Author(s):  
Hamdi Bilici ◽  
Loi Ta ◽  
Briant Carcamo

Abstract The Vietnamese economy has been progressing to become a supplier to many multinational corporations (MNC). However, barriers presently exist that prevent Vietnamese firms from fully integrating into the supply chain of these global actors. Weak FDI overflow and block trading has government officials and business executives troubled that Vietnamese firms are still on the periphery of these global supply networks. Even as MNCs operating in Vietnam import many semi-finished products from other countries, Vietnamese firms are not benefiting from the opportunities to incorporate into the supply chain because of the lack of global experience, FDI, an educated workforce and outdated facilities. Vietnamese firms must upgrade their facilities and equip their labor forces to acquire MNC contracts and find global partners who can supply financing and knowhow.


2016 ◽  
Vol 9 (3) ◽  
pp. 245-252 ◽  
Author(s):  
K.C. Fung ◽  
Lurong Chen ◽  
Alicia Garcia-Herrero

Purpose The purpose of this paper is to investigate what affects trade in parts and components, particularly for Latin America and East Asia. Design/methodology/approach The methodology includes using data analysis as well as regressions Findings The main findings show that logistics and infrastructure are among the most important determinants of supply chain trade. For Latin America to participate more in such trade, the region should attract more foreign direct investment, including direct investment from China in transportation, roads and ports as well as infrastructure in general. Originality/value This paper is among the first in the literature to conduct regression analysis on trade in parts and components.


A foreign direct investment (FDI) is an investment in the form of controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control. Foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in other country. Generally, Foreign direct investment (FDI) takes place when an investor establishes foreign business operations or acquires foreign business assets, including establishing ownership or controlling interest in a foreign company.Foreign direct investment (FDI) in India is a major monetary source for economic development in India. Foreign companies invest directly in fast growing private Indian businesses to take benefits of cheaper wages and changing business environment of India. Foreign Direct Investment (FDI) gives both positive and negative impacts on Indian economy in epoch of global value chain. The global value chain (GVC) describes the people and activities involved in the production of a good or service and its supply, distribution, and post-sale activities (also known as the supply chain) when activities must be coordinated across geographies. A supply chain is the network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product from the delivery of source materials from the supplier to the manufacturer, through to its eventual delivery to the end user. International production, trade and investments are increasingly organized within so-called global value chains (GVCs) where the different stages of the production process are located across different countries. Industrialists are having different thoughts on impacts of Foreign Direct Investment (FDI) on Indian economy.


Author(s):  
Quang-Thanh Ngo ◽  
Ngoc-Phuc Doan ◽  
Thanh-Hai Thi Tran ◽  
Tien-Dung Nguyen

The paper, using a three-wave unbalanced panel of 3252 observations of young small and medium-sized firms in 2011–2013, examines the effect of direct linkages between firms with foreign direct investment and young small and medium-sized firms on technology adoption strategies and the further influence of technology transfers from such linkages on technology adoption strategies. Moreover, the paper analyzes the extent that economic obstacles may cause young small and medium-sized firms to choose different adoptions. Our analysis shows that exporting firms do not tend to conduct embodied backward/forward adoptions, but more likely adopt the embodied backward purchasing. In addition, the impact of competitiveness follows an inverse U-shaped pattern for the embodied backward adoption, but a U-shaped pattern for the disembodied adoption. In terms of market power, there exists an inversed U-shaped pattern for the embodied backward adoption. Under the impact of foreign direct investment (FDI) linkages and vertical spillovers, it is found that technology transfer through backward/forward linkages is associated with the embodied ones, whereas a linkage with FDI domestic customers/suppliers is less likely associated with the embodied ones. In addition, under technology transfer, firms facing economic constraints may overcome these by looking for other financial sources and embodied technology transfer. The paper suggests the path for FDI firms, young small and medium-sized enterprises (SMEs), and technology adoption strategies in the future.


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