Coercion and Foreign Investment Rearrangements

1978 ◽  
Vol 72 (1) ◽  
pp. 17-36 ◽  
Author(s):  
Detlev F. Vagts

Expropriations in the later 1970’s often proceed more suavely than in the past. Straightforward seizure, to be sure, still has devotees. However, an increasingly favored approach is to induce the foreign investor to convey his property (or an interest therein) by an instrument that on its face represents an ordinary sale. That sale may be accompanied by a revision of the terms of some underlying contract between the investor and the government. The purpose of this article is to explore whether any body of rules now exists setting limits to the means that a government can use to obtain the investor’s consent. It then asks whether that law could be further developed so as to improve the quality of such negotiations and to cause them to produce more equitable results. Thereby it would indirectly improve the security and efficiency of the whole process of foreign direct investment.

1997 ◽  
Vol 36 (4I) ◽  
pp. 403-418
Author(s):  
Stephen Guisinger

Pakistan for many years maintained strict controls on foreign direct investment. However, over the past decade controls on foreign investment in manufacturing have diminished sharply, though less so for the service sector. The government continues to impose restrictions on foreign trade, which adversely affect foreign direct investors in several ways. Nonetheless, Pakistan has moved a substantial distance toward liberalising direct foreign investment. There are two obvious policy issues related to foreign investment raised by these developments. First, should Pakistan proceed further toward liberalisation and at what pace? Second, with a liberalised investment sector, should Pakistan become an active protagonist among developing countries for a multilateral agreement on investment?


2001 ◽  
Vol 33 (4) ◽  
pp. 663-665 ◽  
Author(s):  
Asim Erdilek

The surge in foreign direct investment (FDI)—investment with managerial control by the foreign investor, usually a multinational corporation—has been the major driver of globalization in the past two decades and the accelerator of economic development in many developing countries. It has, however, bypassed Turkey. By all relevant relative measures found in the United Nations' annual World Investment Report, Turkey has failed to attract much FDI.


2013 ◽  
Vol 67 (4) ◽  
pp. 863-888 ◽  
Author(s):  
Stephen G. Brooks

AbstractPolitical scientists and economists have long been interested in the role of special interests in the policymaking process. In the past few years, a series of important new books have argued forcefully that the lobbying activities of economic actors have an important influence on the prospects for war and peace. All of these analyses claim that whether economic actors enhance or decrease the likelihood of conflict ultimately depends on the domestic political balance between economic actors who have a strong vested interest in pushing for peace versus those that do not. I advance two contrary arguments. At least among the advanced states, I posit there are no longer any economic actors who will be favorable toward war and who will lobby the government with this preference. All of the identified mechanisms that previously contributed to such lobbying in these states have been swept away with the end of colonialism and the rise of economic globalization. In particular, I show that the current structure of the global economy now makes it feasible for foreign direct investment to serve as an effective substitute for conquest in a way that was not possible in previous eras. My second argument concerns those economic actors in advanced states with a preference for peace. I posit that it has become unnecessary for them to directly lobby the government to avoid war on economic grounds because economic globalization—the accumulation of decisions by economic actors throughout the globe—now has sufficiently clear economic incentives for leaders.


2013 ◽  
Vol 43 (2) ◽  
pp. 241-269 ◽  
Author(s):  
Maurício Mesquita Bortoluzzo ◽  
Sergio Naruhiko Sakurai ◽  
Adriana Bruscato Bortoluzzo

Foreign direct investment (FDI) has become increasingly important for the Brazilian economy: the ratio of FDI inflow to the country's gross domestic product (GDP) increased from a 0.6% average in the 1980's to 2.5% from 2001 to 2010, according to data from UNCTAD. However, there is great inequality in the distribution of this investment among Brazilian federation units. This study aims at investigating the determining factors for the location of foreign direct investment across Brazilian states, based on an econometric study with panel data for the years 1995, 2000 and 2005. The results showed that foreign investment responded positively to consumer market size, quality of labor and transport infrastructure, but negatively to cost of labor and tax burden.


2018 ◽  
Vol 17 (2) ◽  
pp. 73-78
Author(s):  
Veronica Roberts

The UK Government has recently published a White Paper proposing the creation of a new foreign investment regime, under which the Government would have powers to review a very broad range of transactions if they give rise to a national security risk. This article reviews the key provisions of the Government's proposal and also highlights the broader global context, with a number of other countries also expanding their own foreign investment regimes.


Subject The fall in foreign investment last year. Significance The government has launched a new Foreign Investment Promotion Agency (APIE) to buck a sharp drop in foreign direct investment (FDI) last year. Breaking with the country's long-standing sector-agnostic approach, the agency will seek to attract investment to specific sectors, including energy, public infrastructure and the food industry. Impacts A more business-friendly administration in Argentina could potentially divert FDI from Chile. Critics of the new FDI regulation maintain that it will dampen inflows. Efforts to attract investment in food and mining services represent a bid to diversify from mineral exports.


Author(s):  
Kheang Un

With a strong economy and newly acquired confidence following three decades of rapid economic expansion, China has pursued an outward looking policy based upon foreign direct investment, development assistance and trade targeting particularly the developing world. Such expansion has drawn concerns over its impact on human rights, democratization and the environment. This paper assesses these concerns by examining Sino-Cambodia relations over the past sixteen years. It concludes that while trade, development assistance, and investment have had positive effects on Cambodia’s economic development, concerns that these engagements have derailed deeper democratization in Cambodia are not deterministic. Cambodia’s authoritarian trajectory is less a product of China’s engagement and more of the Cambodian elites’ defiance of Western efforts at democratic promotion and belief in state developmentalism—economic prosperity with tight political control.


2020 ◽  
Vol 5 (1) ◽  
pp. 32-38
Author(s):  
Dr. A. Muthusamy ◽  
Raghuveer Negi

Objective – This paper argues the retrospective effect of foreign investment inflow. The FDI not only causes economic growth in the nation also it vindicate the societal development in the host nation. It is assumed that FDI does affect societal development either directly or indirectly also it can be constructive or dubious. Methodology – The societal development indicators have been taken for the study such as access to electricity, refugee population, and total natural resource on rent. The Ordinary Least Square (OLS) method used for regression analysis, Augmented Dickey-Fuller (ADF) used to analyse stationarity and Autoregressive Distributive Lag (ARDL) used for empirical results. Findings – The result shows the consistency in FDI inflows, but all the taken indicators have not experienced the positive effect of FDI on the societal development of a nation. Novelty –Also, the policies of the government and initiative related to foreign investment inflow have major impact on societal growth in the nation. Type of Paper: Empirical Keywords: Electricity; FDI; India; Natural Resources; Refugee Population; Societal Development Reference to this paper should be made as follows: Muthusamy, A; Negi, R. 2020. Does Foreign Direct Investment Induces Societal Development in India?, J. Fin. Bank. Review, 5 (1): 32 – 38 https://doi.org/10.35609/jfbr.2020.5.1(4) JEL Classification: A1; E01; M14; M16


2019 ◽  
Vol 9 ◽  
pp. 77-89
Author(s):  
Khom Raj Kharel ◽  
Suman Kharel

 The purpose of this paper is to analyze the foreign direct investment status and environment in Nepal. There is significant contribution of foreign investment in economic development of developing countries like Nepal. Foreign investment attraction in a country like Nepal increases the foreign capital and technology transfer. Since 1990s inflow of foreign direct investment (FDI) has been increasing in Nepal due to the adoption of liberal economic policy by the government of Nepal. The Foreign Investment Technology Transfer Act (FITTA) has made better foreign investment environment in Nepal. This paper examines and analyses the contribution of FDI in Nepal. For the analysis, simple linear regression model has been applied to measure the impact of FDI on GDP and employment. Because FDI inflow has been recorded after 1990s, the impact of FDI has been analyzed in this paper over the period of 1990/91-2018/19. This study finds a positive impact of FDI on GDP and other macro variables.


In recent years, significant of Foreign Direct Investment has been increasing especially in the developing countries. These countries are trying their level best to attract more and more FDI. Foreign Direct Investment takes place when a company invests directly in the production or marketing of a product in a foreign country.FDI is defined as an investment involving a long term relationship that reflects the long term interest and control of a resident entity in the host country. Industrial investment plays a significant role in the development of a country. Broadly there are two types of foreign investment viz., foreign direct investment and portfolio investment. The developments are easily possible through Foreign Direct Investment (FDI) because it helps to bring close the different economies of the world by investing capital in a country. Capital formation is an important determinant of economic growth. While domestic investments add to the capital stock in an economy, FDI plays a complementary role in overall capital formation and filling up the gap between domestic savings and investment. Foreign investment plays an important role in the long term economic development by augmenting availability of capital, enhancing competitiveness domestic economy through transfer of technology, strengthening infrastructure, raising productivity, generating new employment opportunities and boosting exports. The Government has implemented several reforms in recent years to attract more FDIs. These include improving infrastructure, revising the law on the land acquisition, reforming labour law and rationalizing the process of obtaining environmental clearances. In this article researcher focused on industrial opportunities and challenges in Tamil Nadu for industrial development of the state.


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