scholarly journals The Spillover Effects of Foreign Direct Investments on Innovation in China

2017 ◽  
Author(s):  
Chenye Zhang ◽  
Ping Wang
Keyword(s):  
Spillover Effects ◽  
Foreign Direct Investments

Investments by Emerging-Market Multinationals in Other Emerging Markets

2018 ◽  
pp. 630-656
Author(s):  
Jing Li ◽  
Daniel Shapiro
Keyword(s):  
Sustainable Development ◽  
Corporate Governance ◽  
Emerging Economies ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Institutional Development ◽  
Spillover Effects ◽  
Investment Strategy ◽  
Future Research ◽  
Foreign Direct Investments

This chapter reviews the literature on foreign direct investments among emerging economies (E-E FDI), focusing on the motivations behind E-E FDI, country-specific advantages and firm-specific advantages associated with emerging-economy multinational enterprises (EMNEs), and spillover effects of E-E FDI on host-country economic and institutional development. We identify the following topics as posing important questions for future research: EMNEs’ ability to leverage home-government resources and diplomatic connections to promote investment in other emerging economies; nonmarket strategies of EMNEs in emerging economies; ownership and corporate governance affecting investment strategy and performance of EMNEs; E-E FDI contributions to sustainable development in host countries. Future studies should also consider potential heterogeneity among EMNEs by integrating insights from institutional theory, network theory, political science, corporate governance, corporate social responsibility, and sustainable-development research.

FDI Spillovers at the National and Subnational Level: The Impact on Product Innovation by Chinese Firms

2013 ◽  
Vol 9 (3) ◽  
pp. 413-435 ◽  
Author(s):  
Jing Li ◽  
Dong Chen ◽  
Daniel M. Shapiro
Keyword(s):  
Product Innovation ◽  
Knowledge Spillovers ◽  
Emerging Market ◽  
National Level ◽  
Spillover Effects ◽  
Foreign Direct Investments ◽  
Chinese Firms ◽  
Fdi Spillovers ◽  
Foreign Presence ◽  
The Impact

AbstractWe investigate the degree to which the presence of inward foreign direct investments (FDI) influences product innovation by emerging market firms. We begin with FDI spillover effects at the national level, the common approach in the literature. We further examine spillover effects at the subnational level because knowledge spillovers have been found to be localized. We study both intra-industry and inter-industry FDI spillovers in a subnational location, based on the distinction in the cluster literature between Marshall–Arrow–Romer specialization externalities and Jacobian diversification externalities. Using information from more than 346,000 Chinese manufacturing firms from 2000 to 2006, we find that Chinese firms improve product innovation when they are located in cities with concentrated foreign innovative activities in the same industry. These intra-industry spillover benefits decrease quickly, however, as foreign presence increases and, at high levels of foreign concentration, are dominated by the crowding-out effect. We also find evidence of inter-industry spillover benefits in a city; diversity of industries with a foreign presence contributes to product innovation by Chinese firms.

Foreign direct investments, democracy, and economic growth in Turkey

2017 ◽  
Vol 44 (2) ◽  
pp. 232-252 ◽  
Author(s):  
Nazif Durmaz
Keyword(s):  
Positive Impact ◽  
Small Sample Size ◽  
Emerging Market ◽  
Spillover Effects ◽  
Small Sample ◽  
Cointegration Analysis ◽  
Foreign Direct Investments ◽  
Bounds Testing ◽  
Content Type ◽  
Long Run

Purpose In the last decade, foreign direct investment (FDI) flows have increased dramatically in the world, especially in the emerging economies. Some of these countries make changes in their market conditions that will improve the civil rights and liberties to attract better FDI flows. The purpose of this paper is to test the linkage between democracy and FDI flows to Turkey. Design/methodology/approach The present study employs a bounds testing procedure developed (Pesaran et al., 2001) for cointegration analysis on six different long-run models with selected determinants of FDIs with yearly data from 1977 to 2011. Findings The intuition the paper empirically provides how improvements in democracy have a significant positive impact on FDI flows to Turkey. The results may also put forward that, in the long run, FDI inflows will have spillover effects in Turkey’s economy. Research limitations/implications Although one drawback in the study is having a small sample size of 35 observations, estimating six different long-run models is one way to overcome it. Thus presented results may be in short of simplification for some readers. This, however, opens an opportunity for future studies to further the proposal by employing in different models and/or longer data sets if possible. Practical implications A stable government policies, more civil freedom, and sustained institution politics should not be ignored in Turkey given its geopolitical location. Originality/value This paper satisfies the established need to study of democracy and FDI flows link is necessary in an emerging market such as Turkey.

FDIs Productivity Spillovers in Regional Clusters: A Comparison between Poland and Romania

2010 ◽  
pp. 99-120
Author(s):  
Chiara Franco ◽  
Kornelia Kozovska
Keyword(s):  
Negative Impact ◽  
Empirical Studies ◽  
Spillover Effects ◽  
Empirical Literature ◽  
High Tech ◽  
Foreign Direct Investments ◽  
The European Union ◽  
Firm Level ◽  
Regional Clusters ◽  
Eastern European Countries

In recent years Foreign Direct Investments (FDIs) inflows towards Eastern European countries have progressively increased, further stimulated by the entry of some countries into the European Union. However, the empirical literature finds mixed evidence for the actual occurrence of spillover effects from MNEs. We contribute to this discussion by investigating whether spillover effects occur more frequently in domestic firms located within regional clusters, taking into account the distinction between low-tech and high-tech sectors. Our findings show no evidence that location within regional clusters contributes to firms benefiting from FDIs spillovers. The findings for Romania show that, on the contrary, the productivity of firms located within regional clusters is influenced more negatively by the presence of MNEs than of firms located outside regional clusters. Furthermore, we find that FDIs have, in most cases, negative impact on firm-level productivity, in line with the previous findings of empirical studies on transition countries.

scholarly journals Land Withdrawal Vs. Regional Development: Does Withdrawal of Agricultural Land Lead to Increase in Entrepreneurial Activity and Generate Positive Spatial Spillovers? (Slovak Republic)

2018 ◽  
Vol 10 (4) ◽  
pp. 590-613 ◽  
Author(s):  
Katarína Melichová ◽  
Ina Melišková ◽  
Lucia Palšová
Keyword(s):  
Land Use ◽  
Agricultural Land ◽  
Slovak Republic ◽  
Spillover Effects ◽  
Sustainable Land Use ◽  
Entrepreneurial Activity ◽  
Foreign Direct Investments ◽  
Spatial Spillovers ◽  
Soil Sealing ◽  
Established Firms

Abstract In an increasingly urbanized world, the scarcity of space is a growing problem along with land consumption and soil sealing. To achieve sustainable development and sustainable land use, society has to resolve conflicts between residential, industrial, transport, commercial and green areas while creating a balance between social, economic and ecological targets. However, coordination of sustainable land use is a challenge for policymakers. The paper examines whether the withdrawal of land from the agricultural land fund leads to development, measured both by the increase in domestic entrepreneurial activity, as well as by the increase in foreign direct investments. The results are based on the analysis of panel data on the amount of land withdrawal, newly established firms and inward flow of FDI covering 41 administrative districts of Slovak Republic over 9 years (6 years in case of the FDI, due to the availability of data). Additionally, the spatial Durbin panel model was used to examine, whether land withdrawal and its non-agricultural use generate positive spillover effects on surrounding regions in terms of increased entrepreneurial activity and flow of FDI.

scholarly journals Innovation Propensity in Croatian Enterprises: Results of a Community Innovation Survey

2008 ◽  
Vol 3 (1) ◽  
pp. 77-88 ◽  
Author(s):  
Zoran Aralica ◽  
Domagoj Račić ◽  
Dubravko Radić
Keyword(s):  
Innovation Policy ◽  
Spillover Effects ◽  
Policy Framework ◽  
Foreign Direct Investments ◽  
Community Innovation Survey ◽  
Enterprise Growth ◽  
Positive Effects ◽  
Innovation Activities ◽  
Demand Pull ◽  
Effective Policy

Innovation Propensity in Croatian Enterprises: Results of a Community Innovation SurveyThis paper assesses the determinants of innovation activities in Croatian enterprises and their implications for innovation policy. A Type-2 Tobit model is used for modelling the innovation behaviour of Croatian companies, based on the results of a Community Innovation Survey conducted for the period 2001-2003. This model identified the positive effects of conditions for enterprise growth (enterprise size and demand pull variable) and the integration of enterprises into international flows of capital and goods (through foreign direct investments) as well as R&D activities. These variables can be tackled through a more effective policy framework that should increase competitiveness within industries in order to stimulate the demand for innovation. The focus should be on fostering enterprise growth, attraction of FDI with strong spillover effects, and stimulating the export capability of enterprises. Only in such a context can the positive effects of engagement in R&D be maximised.

scholarly journals Investor Sentiment and Employment

2019 ◽  
Vol 55 (5) ◽  
pp. 1581-1618
Author(s):  
Maurizio Montone ◽  
Remco C. J. Zwinkels
Keyword(s):  
Investor Sentiment ◽  
Strong Support ◽  
Positive Association ◽  
Spillover Effects ◽  
The United States ◽  
Dark Side ◽  
Foreign Direct Investments ◽  
Level Data ◽  
International Industry ◽  
Negative Effect

We develop a multi-country model with moral hazard and noise traders and show that investor sentiment should affect employment growth both domestically and abroad. Using a large sample of international industry-level data, we find strong support for the model’s predictions. We show that U.S. investor sentiment has a positive association with labor market conditions around the world, due to spillover effects as well as foreign direct investments from the United States. We also find that U.S. sentiment amplifies the negative effect of local financial crises on job losses, which supports the idea that financial development has a “dark side.”

scholarly journals REASONS AND DIRECTIONS OF THE INFLUENCE OF FOREIGN DIRECT INVESTMENTS ON THE ECONOMY OF THE RECIPIENT COUNTRY

2020 ◽  
Author(s):  
Oksana Gavryliuk ◽  
Yurij Dolnyi
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Negative Impact ◽  
Recipient Country ◽  
Spillover Effects ◽  
International Investment ◽  
Foreign Direct Investments ◽  
Negative Consequences ◽  
Theoretical Terms ◽  
Advantages And Disadvantages

The article reveals the essence of the investment climate, the quantitative and qualitative parameters of which form the conditions of attractiveness / unattractiveness of the national economy for internal and external investors. We have summarized the motives of exporters and importers of capital, which are represented by the desire of investors to place capital in a particular country or industry, where it will ensure maximum profit, minimize costs and diversify risks. Also, we have examined the main and indirect effects of foreign direct investment. The authors described indirect horizontal and vertical spillover effects, among which are “the demonstration effect”, “the effect of competition” and “the effect of overflow of knowledge on the labor market”. Finally, we have identified the positive and negative consequences of attracting foreign direct investment in the economy of the recipient country on the economic, monetary, technological, social, and environmental areas. Also, we have emphasized that the identified advantages and disadvantages of attracting FDI into the economy of the recipient country are possible in theoretical terms, but are not automatically realized. Each country should evaluate its own internal socio-economic situation, the feasibility of attracting FDI and regulate them in order to maximize benefits and minimize the possible negative impact of the international investment process.

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