The prospects for foreign direct investment in the transitional economies of Southeast Asia

2012 ◽  
pp. 184-201
Keyword(s):  
Foreign Direct Investment ◽  
Southeast Asia ◽  
Direct Investment ◽  
Transitional Economies

scholarly journals The Rise of China and Foreign Direct Investment from Southeast Asia

2011 ◽  
Vol 30 (2) ◽  
pp. 65-75 ◽  
Author(s):  
Krislert Samphantharak
Keyword(s):  
Foreign Direct Investment ◽  
Southeast Asia ◽  
Direct Investment ◽  
Network Effects ◽  
Ethnic Relations ◽  
Chinese Economy ◽  
Cheap Labour ◽  
Rise Of China ◽  
Growing Economy ◽  
Investment In China

This paper discusses foreign direct investment from Southeast Asia to China. With the exception of some government-linked companies, most investments from Southeast Asia have been dominated by the region's overseas Chinese businesses. In addition to cheap labour costs, large domestic market and growing economy, China has provided business opportunities to investors from Southeast Asia thanks to their geographic proximity and ethnic connections, at least during the initial investment period. However, the network effects seem to decline soon after. As the Chinese economy becomes more globalised and more competitive, the success of foreign investment in China will increasingly depend on business competency rather than ethnic relations.

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