scholarly journals International Investment and Firm Performance: Empirical Evidence from Small Open Economies

2014 ◽  
Vol 234 (6) ◽  
Author(s):  
Iulia Siedschlag ◽  
Ville Kaitila ◽  
John McQuinn ◽  
Xiaoheng Zhang
Keyword(s):  
Foreign Direct Investment ◽  
Firm Performance ◽  
Mergers And Acquisitions ◽  
Direct Investment ◽  
Labour Productivity ◽  
Open Economies ◽  
International Investment ◽  
Small Open Economies ◽  
The European Union ◽  
Advanced Economies

SummaryThe global financial and economic crisis has severely affected foreign direct investment, particularly the cross-border mergers and acquisitions in advanced economies. This paper examines the effects of foreign mergers and acquisitions on labour productivity and employment growth over the period 2001-2009 in six small open economies in the European Union: Austria, Belgium, Denmark, Finland, the Netherlands and Sweden. We show that the severity of the crisis has been uneven across these six economies. Taken together, our estimates suggest that foreign direct investment had stronger effects on firm performance in services than in manufacturing.

scholarly journals The shift of the policy towards FDI in European Union: determinants and challenges

2020 ◽  
Vol 1 (14) ◽  
pp. 117-124
Author(s):  
Aleksandra Borowicz
Keyword(s):  
European Union ◽  
Foreign Direct Investment ◽  
United Kingdom ◽  
Mergers And Acquisitions ◽  
Supply Chains ◽  
Direct Investment ◽  
Transnational Corporations ◽  
Global Supply Chains ◽  
The European Union ◽  
The United Kingdom

Since 2016, a change in the policy on foreign direct investment (FDI) can be observed in the European Union. This change was significantly influenced by global processes, which resulted in a particular interest in direct investments carried out by transnational corporations from China, India or Russia. In particular, countries such as France, Germany and the United Kingdom, observed a significant increase in the number of mergers and acquisitions of domestic enterprises in 2010-2016. Therefore, in 2018 the process of creating a European Screening Mechanism was initiated, which entered into force in March 2019. At the same time, at the end of 2019, the outbreak of a COVID-19 virus pandemic stopped the process of further globalization by breaking global supply chains, and by restricting the flow of goods, people and capital. Keywords: FDI, screening mechanism, European Union, globalization, COVID-19.

No Green without More Green: The Importance of Protecting FDI through International Investment Law to Meet the Climate Change Challenge

2020 ◽  
Vol 5 (1) ◽  
pp. 1-39
Author(s):  
Sarah Z. Vasani ◽  
Nathalie Allen
Keyword(s):  
Climate Change ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Legal Framework ◽  
International Investment ◽  
The European Union ◽  
International Investment Law ◽  
Investment Treaty ◽  
Private Investors ◽  
Investment Treaty Arbitration

The growing climate change crisis requires significant development in and implementation of sustainable and renewable energies. To bring about that development, greater foreign direct investment is needed. Investment treaty arbitration contributes to encouraging greater levels of foreign direct investment, including in the context of investment in climate-friendly energies, by giving foreign private investors that knowledge that they can have recourse to a neutral dispute forum, which can, in turn, help shape regulatory frameworks, resulting in attractive investment conditions for foreign private investors. In this article, the authors argue that the European Union’s forward thinking regulatory approach has been pivotal to the progression of a legal framework encouraging cleaner energy and more environmentally-friendly technology. Whilst enormous benefits have been derived from this approach, the authors argue that the European Union is at risk of overstepping the mark and of deterring, as opposed to encouraging, the necessary foreign direct investment, through, in part, its much publicised aversion to investment treaty arbitration.

scholarly journals PROBLEMS AND WAYS TO ACTIVATE INVESTMENT ACTIVITY IN UKRAINE

2021 ◽  
pp. 84-87
Author(s):  
Анастасія Говеля ◽  
Ірина Чекмасова
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
International Investment ◽  
Investment Climate ◽  
The European Union ◽  
Investment Activity ◽  
Investment Projects ◽  
Social Environmental

The article examines the current state and problems of the development of attracting foreign direct investment. The author determined that the most investments in Ukraine are made by such countries as Cyprus and some countries of the European Union. It is proved that foreign investment is one of the most effective ways to develop economic, social, environmental and other spheres. It is determined that the key problems in attracting foreign investment today are: political instability, legislation, high inflation, and undeveloped infrastructure. The author has identified trends and explored the prospects for the development of attracting foreign direct investment, which allows us to demonstrate the dynamics of investments, which is considered an indicator of changes in the level of trust and rating of the country as a whole. Foreign investment plays a major blow to the economic development of many countries. Raising in the economy largely provides effective investment activity of Ukraine, which works by showing the dynamics invested in the country, so the investment climate in any country stands out from the main factors of socio-economic activity. situation. Thus, projects, innovative investments can be of great benefit for the economic development of the country, help to solve economic problems, so attract investors necessary and justified. In order to increase investment attractiveness, the country needs to implement a set of measures on the part of states and affairs, and as Ukraine has a strong production potential, thus concentrating the enhancement on the realization of its competitive advantages. It is concluded that the main directions of increasing the efficiency of investment activities, now and in the near future, will be: new modern infrastructure, improved investment, attracting foreign investors and improving the tax system. To improve the investment climate in Ukraine and increase the flow of foreign investment, it is necessary to promote the development of science, improve the regulatory framework in the field of investment, participate more actively in international investment projects, and develop small and medium-sized businesses in Ukraine.

Relationship of Labour Costs and Labour Productivity with Foreign Direct Investment in the V4 Countries

2020 ◽  
Vol 11 (1) ◽  
pp. 147-147
Author(s):  
Jarmila Hudakova ◽  
Viera Papcunova ◽  
Michaela Stubnova ◽  
Marta Urbanikova
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Slovak Republic ◽  
Labour Productivity ◽  
European Countries ◽  
The European Union ◽  
Central European ◽  
Eu Member States ◽  
Labour Costs ◽  
Visegrad Group

The free movement of capital brings us increased interest but also a struggle for a foreign investor among individual countries. Four Central European countries joined their forces and created the Visegrad Group. The Visegrad Group (V4) represents an informal grouping of 4 Central European countries – the Czech Republic, Hungary, the Republic of Poland and the Slovak Republic. It is a lively and informal regional structure of 4 EU member states, which share the same values, have a common history, culture and geographical status. These countries work closely together; however, on the other hand, they also compete with each other. After the accession of these countries to the European Union (in 2004), there is a gradual convergence of these economies towards the original EU countries. The gradual convergence of prices of goods and services in these countries also causes the population's demand for growth in wages and salaries, which leads to an increase in the total labour costs. Labour productivity in these countries is on the rise, but still lags behind the EU average. Foreign direct investment is the driving force of any economy. In this context, we were interested in the relationship between labour costs and labour productivity in relation to foreign investment. It is important to see whether rising labour costs and lower labour productivity can lead to a slowdown in foreign direct investment inflows. Keywords: labour costs, labour productivity, foreign direct investment, countries V4

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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