Modelling foreign direct investment in China

This thesis consists of three empirical and one theoretical studies. While China has received an increasing amount of foreign direct investment (FDI) and become the second largest host country for FDI in recent years, the absence of comprehensive studies on FDI inflows into this country drives this research. In the first study, an econometric model is developed to analyse the economic, political, cultural and geographic determinants of both pledged and realised FDI in China. The results of this study suggest that China's relatively cheaper labour force, high degree of international integration with the outside world (represented by its exports and imports) and bilateral exchange rates are the important economic determinants of both pledged FDI and realised FDI in China. The second study analyses the regional distribution of both pledged and realised FDI within China. The econometric properties of the panel data set are examined using a standardised 't-bar' test. The empirical results indicate that provinces with higher level of international trade, lower wage rates, more R&D manpower, more preferential policies and closer ethnic links with overseas Chinese attract relatively more FDI. The third study constructs a dynamic equilibrium model to study the interactions among FDI, knowledge spillovers and long run economic growth in a developing country. The ideas of endogenous product cycles and trade-related international knowledge spillovers are modified and extended to FDI. The major conclusion is that, in the presence of FDI, economic growth is determined by the stock of human capital, the subjective discount rate and knowledge gap, while unskilled labour can not sustain growth. In the fourth study, the role of FDI in the growth process of the Chinese economy is investigated by using a panel of data for 27 provinces across China between 1986 and 1995. In addition to FDI, domestic R&D expenditure, international trade and human capital are added to the standard convergence regressions to control for different structural characteristics in each province. The empirical results support endogenous innovation growth theory in which regional per capita income can converge given technological diffusion, transfer and imitation.

Measuring and assessing the effects and extent of international bond market integration

We review briefly the literature on international financial integration, especially as it pertains to bond market integration. This contextualizes the review we than provide of a number of papers contained in a special issue of this Journal. © 2005 Elsevier B.V. All rights reserved.

Acquirer and owner perceptions of technology integration:the South African case

Developing countries are subject to the same global pressures as their developed counterparts but have additional domestic challenges that may place them at a significant, and perhaps insurmountable, disadvantage. However, technology still offers them the opportunity to participate in the international economy. Difficult conditions in their countries do not absolve managers from formulating and implementing technology policies that can make their firms globally competitive. At a macro-economic level, a number of broad developmental issues impact on the use of technology in developing countries. The subject of this paper is to examine the challenge for South African firms in their efforts to master technology, despite internal and external difficulties. Owners of technology need to consider the local context when supplying their technology to developing markets. The paper aims to investigate the views of technology recipients by examining the perceptions of South African managers regarding technology integration in a manufacturing environment. A number of technology suppliers were also interviewed in order to obtain their opinions on the issues raised by the technology acquirers. The importance of different factors in integrating technology is studied in relation to managers ’ abilities to control these variables. An importance-control grid framework is used to identify critical parameters and to assess how they can be managed in a complex environment.

Equity market integration in the Asia-Pacific region:a smooth transition analysis

We use a smooth transition logistic function to test for equity market integration in a sample of Asia-Pacific countries. This allows us to gauge the speed at which a market is becoming integrated. Of the countries we examine we find that Thailand has the fastest pace of global integration. When we examine the extent to which local integration is taking place, we find that Singapore is experiencing the fastest rise in market integration. © 2004 Published by Elsevier Inc.

Modeling equity market integration using smooth transition analysis:a study of Eastern European stock markets

This paper assesses the extent to which the equity markets of Hungary, Poland the Czech Republic and Russia have become less segmented. Using a variety of tests it is shown there has been a consistent increase in the co-movement of some Eastern European markets and developed markets. Using the variance decompositions from a vector autoregressive representation of returns it is shown that for Poland and Hungary global factors are having an increasing influence on equity returns, suggestive of increased equity market integration. In this paper we model a system of bivariate equity market correlations as a smooth transition logistic trend model in order to establish how rapidly the countries of Eastern Europe are moving away from market segmentation. We find that Hungary is the country which is becoming integrated the most quickly. © 2005 ELsevier Ltd. All rights reserved.

Information and Communication Technology (ICT) international spillovers

As information and communications technology (ICT) involves both traditional capital and knowledge capital, potential spillovers through various mechanisms can occur. Having tried to confirm the existence of ICT spillovers across country borders as Park et al. (Inf. Syst. Res., vol. 18, pp. 86-102, 2007), we investigate the patterns and mechanisms of international ICT spillovers. We use panel data on 37 countries from 1996 to 2004. We find that developing countries could reap more benefits from ICT spillovers than developed countries. We also find that the higher the Internet penetration rate in recipient countries, the more international ICT spillovers there might exist. Our findings are important for policy decisions regarding national trade liberalization and economic integration. Developing economies that are more open to foreign trade may have an economic advantage and may develop knowledge-intensive activities, which will lead to economic development in the long run.

Educating future IS professionals through real-world integration

We report on teaching Information Systems Analysis (ISA) in a way that takes the classroom into the real world to enrich students' understanding of the broader role of being an IS professional. Through exposure to less controllable and more uncomfortable issues (e.g., client deadlines; unclear scope; client expectations; unhelpful colleagues, complexity about what is the problem never mind the solution) we aim to better prepare students to respond to the complex issues surrounding deployment of systems analysis methodologies in the real world. In this paper we provide enough detail on what these classes involve to allow a reader to replicate appealing elements in their own teaching. This paper is a reflection on integrating in the real world when teaching ISA – a reflection from the standpoint of students who face an unstructured and complex world and of lecturers who aim to prepare students to hit the floor running when they encounter that world.

Interdependence of international equity market volatility

This paper investigates whether equity market volatility in one major market is related to volatility elsewhere. This paper models the daily conditional volatility of equity market wide returns as a GARCH-(1,1) process. Such a model will capture the changing nature of the conditional variance through time. It is found that the correlation between the conditional variances of major equity markets has increased substantially over the last two decades. This supports work which has been undertaken on conditional mean returns which indicates there has been an increase in equity market integration.

War crimes, conditionality and EU integration in the Western Balkans

The baleful legacy of the wars of the 1990s continues to dog the states and societies of the former Yugoslavia and has overshadowed the disappointingly slow and hesitant trajectory of the region towards the EU. At the start of the new millennium, with the removal of key wartime leaders from the political scene in both Croatia and Serbia, it was widely hoped that the region would prove able to ‘leave the past behind’ and rapidly move on to the hopeful new agenda of EU integration. The EU’s Copenhagen criteria, which in 1993 first explicitly set out the basic political conditions expected of aspirant EU Member States, proved effective in the case of the new democracies of Central and Eastern Europe in supporting the entrenchment of democratic norms and practices, and stimulating reconciliation and good neighbourly relations among countries with turbulent histories. Building on this experience, the Stabilisation and Association Process, launched for the countries of the Western Balkans in 1999, included both full cooperation with the International Criminal Tribunal for the former Yugoslavia (ICTY) and regional reconciliation among the political conditions set for advancing these countries on the path to EU integration. EU political conditionality was intended to support the efforts of new political leaders to redefine national goals away from the nationalist enmities of the past and focus firmly on forging a path to a better future. This Chaillot Paper examines the extent to which this strategy has worked, especially in the light of the difficulties it has encountered in the face of strong resistance to cooperation among sections of the former Yugoslav population, many of whom have not yet fully acknowledged the crimes committed during the 1990s. Key chapters in the volume raise the vital questions of leadership and political will. EU political conditionality does not work unless the EU has a partner ready and willing to ‘play the game’, which presupposes that EU integration has become the overriding priority on the national political agenda.

Regionalism, globalisation and international order:Europe and Southeast Asia

New regionalism and globalization have been prominent themes in academic and political debates since the beginning of the 1990s. Despite the considerable amount of scholarly attention that the new regionalism has received in recent years, its full empirical and theoretical potential has yet to be fully investigated. This illuminating study provides an overview of new avenues in theorizing regionalism and proposes a consolidated framework for analysis and comparison. Offering a comparative historical perspective of European and Southeast Asian regionalism, it presents new and imaginative insights into the theory and practice of regionalism and the links between regional developments, globalization and international order. Contents: Introduction; Regionalism and integration theory the first wave: traditional approaches; New regionalism the second wave: towards a framework for comparative regionalism; Regionalism in the EU and ASEAN during the Cold War: the first wave; Second-wave regionalism: the post-Cold War period; Identifying regions: emerging regional identities in Europe and East Asia; Conclusion; Appendix; Bibliography; Index.