scholarly journals The Impact of Outward FDI on Home-Country Employment in a Low-Cost Transition Economy

Author(s):  
Jaan Masso ◽  
Urmas Varblane ◽  
Priit Vahter
2017 ◽  
Vol 9 (6) ◽  
pp. 154 ◽  
Author(s):  
Shuyuan Jiang ◽  
Dan Cheng

Since China put forward the strategy of “going out”, outward foreign direct investment (FDI) began to grow rapidly, and the manufacturing industry, as the pillar industry of our country, is facing the dilemma of transformation. This paper will focus on this topic of the relationship between the outward FDI and upgrading of China’s manufacturing industry structure, and sort out and summarize the domestic and foreign literature. It is concluded that the existing literatures are consistent: the outward FDI can promote the upgrading of industrial structure of home country. In terms of China’s manufacturing industry, the outward FDI can promote the upgrading of China’s manufacturing industry, however, the impact have a kind of hysteresis quality, and may produce the phenomenon of “industry hollowing out”.


Author(s):  
Haeyeon Yoon ◽  
Almas Heshmati

Abstract This study attempts to verify the pollution haven hypothesis by investigating the impact of environmental regulations on foreign direct investment (FDI). It uses Korean outward FDI data covering the manufacturing sector for the period 2009–15. This study not only considers the stringency when measuring the degree of the host country’s environmental regulations but also the enforcement of these environmental regulations. Since the pollution haven’s effects indicate moving the polluting production stages from the home country to other (host) countries, we differentiate between investments in the ‘production’ part from those in the non-production part using location information about the host country. The main results of a FDI’s model estimation show that the stricter the regulations in host countries in Asia, the lower the FDI both intensively and extensively in these countries. This supports the prevalence of the effects of a pollution haven. However, before we separate FDI into the production and non-production parts, the effects of environmental regulations on FDI are hindered by FDI in the non-production part. The results indicate that while environmental regulations are determinants of FDI in the production part, they do not have a significant effect on FDI decisions when the entire FDI is considered.


The Tendency of firms from emerging economies to invest abroad has increased significantly during the last two decades. Despite this trend, comprehensive literature survey research on macroeconomic determinants and antecedents of outward FDI from emerging economies is still underrepresented. The purpose of this paper is to give a comprehensive understanding of home country level factors’ impact on outward FDI from developing countries through a systematic review of past researches on OFDI’s macroeconomic determinants of home economy. The findings reveal that the most important determinants are, home country market size and openness of home country towards internationalization. However, some researches posted contrasting results for the impact of home country’s interest rates, human capital and technological capability on OFDI from emerging economies. This study also points out that emerging economies suffer from shortage of skilled personnel, thus making human capital an essential push factor for OFDI.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niti Bhasin ◽  
Kanika Kapoor

PurposeThe relationship of outward foreign direct investment (OFDI) with home country's exports has significant implications for policymakers as well as business managers of MNEs. Since BRICS nations have emerged as important sources as well as destinations of FDI, this paper aims to study the impact of OFDI from these countries on home country exports by using panel data for BRICS for time period 1993–2015.Design/methodology/approachThe author use panel unit root tests, panel cointegration, VECM and causality tests in the study.FindingsThe results reveal that OFDI has a negative and significant impact on home country exports indicating that outward FDI is a substitute for exports in these countries. It also indicates long-run causality from exports towards OFDI. There is no long-run causality running from OFDI to exports, suggesting that MNEs do not “connect” with home economies' firms through forward and backward linkages in value chain.Practical implicationsFrom the point of view of policymakers, it implies a net outflow of capital as the outflow of foreign investment would not be matched by any incremental export earnings since exports are getting substituted by production abroad. For business managers, it is indicative of a growing foreign market that warrants large scale production and justifies the high cost and risk involved in FDI as a mode of entry compared to exports.Originality/valueTo the best of authors' knowledge, this is the first attempt to deal with the relationship between home country exports and OFDI, for an important group of emerging market economies, i.e. BRICS. The understanding of this relationship allow us to identify whether factors contributing to OFDI from emerging economies are “tied” to their home economies thereby making exports necessary or are rather based on firm specific competencies which are leveraged in different locations to cater to expanding markets.


2020 ◽  
Vol 90 (3) ◽  
pp. 30502
Author(s):  
Alessandro Fantoni ◽  
João Costa ◽  
Paulo Lourenço ◽  
Manuela Vieira

Amorphous silicon PECVD photonic integrated devices are promising candidates for low cost sensing applications. This manuscript reports a simulation analysis about the impact on the overall efficiency caused by the lithography imperfections in the deposition process. The tolerance to the fabrication defects of a photonic sensor based on surface plasmonic resonance is analysed. The simulations are performed with FDTD and BPM algorithms. The device is a plasmonic interferometer composed by an a-Si:H waveguide covered by a thin gold layer. The sensing analysis is performed by equally splitting the input light into two arms, allowing the sensor to be calibrated by its reference arm. Two different 1 × 2 power splitter configurations are presented: a directional coupler and a multimode interference splitter. The waveguide sidewall roughness is considered as the major negative effect caused by deposition imperfections. The simulation results show that plasmonic effects can be excited in the interferometric waveguide structure, allowing a sensing device with enough sensitivity to support the functioning of a bio sensor for high throughput screening. In addition, the good tolerance to the waveguide wall roughness, points out the PECVD deposition technique as reliable method for the overall sensor system to be produced in a low-cost system. The large area deposition of photonics structures, allowed by the PECVD method, can be explored to design a multiplexed system for analysis of multiple biomarkers to further increase the tolerance to fabrication defects.


2009 ◽  
pp. 54-69 ◽  
Author(s):  
A. Shastitko ◽  
S. Avdasheva ◽  
S. Golovanova

The analysis of competition policy under economic crisis is motivated by the fact that competition is a key factor for the level of productivity. The latter, in its turn, influences the scope and length of economic recession. In many Russian markets buyers' gains decline because of the weakness of competition, since suppliers are reluctant to cut prices in spite of the decreasing demand. Data on prices in Russia and abroad in the second half of 2008 show asymmetric price rigidity. At least two questions are important under economic crisis: the 'division of labor' between pro-active and protective tools of competition policy and the impact of anti-crisis policy on competition. Protective competition policy is insufficient in transition economy, especially in the days of crisis it should be supplemented with the well-designed industrial policy measures which do not contradict the goals of competition. The preferable tools of anti-crisis policy are also those that do not restrain competition.


Author(s):  
J.R. Caradus ◽  
D.A. Clark

The New Zealand dairy industry recognises that to remain competitive it must continue to invest in research and development. Outcomes from research have ensured year-round provision of low-cost feed from pasture while improving productivity. Some of these advances, discussed in this paper, include the use of white clover in pasture, understanding the impacts of grass endophyte, improved dairy cow nutrition, the use of alternative forage species and nitrogen fertiliser to improve productivity, demonstration of the impact of days-in-milk on profitability, and the use of feed budgeting and appropriate pasture management. Keywords: dairy, profitability, research and development


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