A panel data analysis of FDI and informal labor markets

The objective of this paper is to examine whether informal labor markets affect the flows of Foreign Direct Investment (FDI), and also whether this effect is similar in developed and developing countries. With this aim, different public data sources, such as the World Bank (WB), and the United Nations Conference on Trade and Development (UNCTAD) are used, and panel econometric models are estimated for a sample of 65 countries over a 14 year period (1996-2009). In addition, this paper uses a dynamic model as an extension of the analysis to establish whether such an effect exists and what its indicators and significance may be.

On the dynamics of exports and FDI: The Spanish Internationalization Process

This paper provides further insights into the dynamics of exports and outward foreign direct investment (FDI) flows in Spain from a time-series approach. The contribution of the paper is twofold: 1) the existence of either substitution or a complementary relationship between Spanish outward investments and exports is empirically tested using a multivariate cointegrated model (VECM). The evolution in exchange flows (1993-2008) and country-specific variables (such as world demand - including Spain’s main recently growing foreign markets - for trade flows and the relative price of exports in order to proxy new global competitors) are taken into account for the first time. And 2) the growth in the trade of services in recent decades leads us to test a specific causality relationship by disaggregating between goods and services flows. Our results provide evidence of a positive (Granger) causality relationship running from FDI to exports of goods (stronger) and to exports of services (weaker) in the long run, the complementarity relation of which is consistent with vertical FDI strategies. In the short run, however, only exports of goods are affected (positively) by FDIs.

The transatlantic business community faced with US direct investment in Western Europe, 1958-1968

This article examines the position of US and European business in the debate about American direct investment in Western Europe in a historical perspective, from the establishment of the Common Market to the introduction of US regulation of foreign direct investment (FDI) a decade later. Based on abundant and diverse archival documents, it sheds new light on the process of Americanisation and contributes to existing research on transnational networks, by revealing the active role industrial leaders on both sides of the Atlantic played in shaping the political responses to problems raised by the American firms' massive presence in the Common Market.

General Equilibrium Long-Run Determinants for Spanish FDI: A Spatial Panel Data Approach

While general equilibrium theories of trade stress the role of third-country effects, little work has been done in the empirical foreign direct investment (FDI) literature to test such spatial linkages. This paper aims to provide further insights into long-run determinants of Spanish FDI by considering not only bilateral but also spatially weighted third-country determinants. The few studies carried out so far have focused on FDI flows in a limited number of countries. However, Spanish FDI outflows have risen dramatically since 1995 and today account for a substantial part of global FDI. Therefore, we estimate recently developed Spatial Panel Data models by Maximum Likelihood (ML) procedures for Spanish outflows (1993-2004) to top-50 host countries. After controlling for unobservable effects, we find that spatial interdependence matters and provide evidence consistent with New Economic Geography (NEG) theories of agglomeration, mainly due to complex (vertical) FDI motivations. Spatial Error Models estimations also provide illuminating results regarding the transmission mechanism of shocks.

A panel data analysis of FDI and informal labor markets

The objective of this paper is to examine whether informal labor markets affect the flows of Foreign Direct Investment (FDI), and also whether this effect is similar in developed and developing countries. With this aim, different public data sources, such as the World Bank (WB), and the United Nations Conference on Trade and Development (UNCTAD) are used, and panel econometric models are estimated for a sample of 65 countries over a 14 year period (1996-2009). In addition, this paper uses a dynamic model as an extension of the analysis to establish whether such an effect exists and what its indicators and significance may be.

Suorat ulkomaiset investoinnit Baltiaan

Tässä kandidaatintyössä tavoitteenamme oli selvittää Baltian alueen suosion syitä investoinnin kohteena. Aluksi selvitimme mitä suorat ulkomaiset investoinnit tarkoittavat ja tarkastelimme investointien hyötyjä sekä investoivalle taholle että investoinnin kohteena olevalle valtiolle. Näiden tutkimusten valossa pystyimme tarkastelemaan investointeja Baltian alueelle. Kuvasimme Baltian maiden investointiympäristöä tietyillä makrotalouden tunnusluvuilla sekä analysoimalla maiden korruptiotilannetta. Lisäksi tutkimme kansainvälisten organisaatioiden tekemiä listauksia liiketoiminnan harjoittamisen ja kilpailukyvyn suhteen. Vertasimme toteutuneita investointilukuja investointiympäristön houkuttelevuuteen eri mittareilla mitattuna, jolloin pystyimme päättelemään, selittävätkö käyttämämme mittarit maihin tehtyjen suorien ulkomaisten investointien määrää. Pyrimme myös selvittämään, mitkä maat ja toimialat ovat olleet Baltian suorien ulkomaisten investointien lähteenä. Lopuksi pohdimme Baltian maiden tulevaisuutta suorien investointien kohteena käytössä olevien ennusteiden perusteella.

Suomalaisten metsäteollisuusyhtiöiden suorat investoinnit Kiinaan ja OLI-paradigma

Tämän tutkimuksen tavoitteena on selvittää, mitkä tekijät aiheuttavat suomalaisten metsäteollisuusyhtiöiden suorien investointien kasvua Kiinassa. Tutkimuksessa tarkastellaan kahden Suomen johtavan metsäteollisuusyrityksen, UPM:n sekä Stora Enson, suoria investointeja Kiinaan paperi- ja kartonkiteollisuudessa. Taustateoriana on OLI-paradigma, jonka avulla tutkitaan investointeihin vaikuttavia yritys- ja sijaintikohtaisia tekijöitä sekä syitä siihen, miksi yritys valitsee suoran investoinnin kansainvälistymismuodoksi. Tutkimus on kvalitatiivinen, ja aineisto koostuu muun muassa yritysten vuosikertomuksista sekä maita koskevista tutkimuksista ja tilastoista. Tutkimuksen tulokset osoittavat, että omistajuuskohtaisista tekijöistä tutkimus- ja kehitystoiminta, tuoteinnovaatiot sekä yritysvastuullisuus ovat suomalaisyhtiöiden vahvuuksia Kiinassa. Kiinan ominaisuuksista puolestaan markkinoiden koko ja liiketoimintaympäristö ovat keskeisiä investointien kasvua selittäviä tekijöitä.

Nordic banks’ entry into the Russian market: motives, processes and challenges

The importance of services in the global economy has grown steadily in the past decades and the growth of services sector’s direct investments has been increasing. Nowadays, all companies are influenced by the much changing global environment and the financial services companies are no exception. The internationalization of financial services companies is an expanding and accelerating phenomenon which has various motivations. The overall aim of this thesis is to shed light on the market entry processes of the Nordic financial services companies when they have entered the Russian market. In this study, the factors affecting Nordic banks’ market entry to Russia are presented in order to better understand what have been the main motives for market entry, what kind of processes the banks have used and what kind of challenges they have faced along the way. A case study approach was used in conducting the empirical research and it aims at investigating a specific case: Nordic banks’ entry into the Russian market. The empirical research was carried out by conducting qualitative interviews for employees involved in entry processes of the case banks. These interviews aimed at examining the Nordic banks’ motives for entering the Russian financial market. This includes reflections on the reasons why the studied banks have decided to enter Russia and what have been the motives behind these decisions. Also, the market entry processes the banks have used when they have entered the Russian market were investigated. The findings allowed comparing the related theories and different market entry modes the case banks have used. Furthermore, the market-related challenges faced by the case banks were mapped and described. In addition, the main factors related to the entry processes of the studied banks were identified and key elements of successful market entry were mapped. The findings suggest that the main motivator for banks have been to follow their customers and hence, increase the revenues and add the value to the shareholders; consequently, being a win-win-win situation to all the related parties. It was also discovered that the banks market entry processes have had resemblances but the banks have taken different paths to get where they are nowadays. As the Russian market environment differs from the one in Nordic countries, also challenges were faced by the case banks. However, the internal challenges were considered more troublesome than the external ones. As the foreign market entry process is complex as well as time and resources consuming, it is vital to understand the specifics of the target market, organizational capabilities and individuals enabling a successful entry process.

Os fluxos de IDE no Brasil nos anos 1990: uma revisão de literatura à luz das transformações em curso

The flows of foreign investments in Brazil starting from the 1990s have called attention due to the magnitude of the invested value, the prevalence of properties acquisitions as a preferential way of carrying out these investments, and for the primacy of the operations involving rivals companies. This article searches for an explanation for the cycle of foreign direct investment flows, which is happening in Brazil. Arguments were reconsidered on the existence of sole assets and the advantages of property and control as a basis for carrying out overseas investments, and to explicit their link with the M&As.

Investir en République Populaire de Chine : l'environnement légal et les formes juridiques d'entreprises

L'économie de la Chine a connu au cours des trois dernières décennies une effervescence sans précédent. Dorénavant ouvert sur le monde, ce nouveau marché de près de 1,3 milliard d'individus possède un potentiel commercial et des perspectives de croissance n'ayant aucun équivalent en Occident. Toutefois, partir à la conquête de l'Empire du Milieu peut s'avérer être une aventure périlleuse pour celui qui ne maîtrise pas le cadre contextuel et légal dans lequel les affaires s'opèrent en ces lieux. Le présent mémoire se veut une étude en deux parties des considérations afin de mener à terme avec succès un projet d'investissement en sol chinois. Dans un premier temps, la présente étude tente de démystifier le climat économique, social et légal entourant le monde des affaires en Chine. L'investisseur étranger a tout intérêt à comprendre cet environnement dans lequel nos repères occidentaux sont parfois inexistants. Il s'agit donc, initialement, de comprendre l'évolution récente de ce pays et les transformations profondes que la Chine a connues dans les dernières décennies. Du socialisme à l'économie de marché, le plus grand marché potentiel sur terre s'est ouvert progressivement sur le monde. Sans délai, l'investissement étranger a alors afflué massivement en ces lieux. Fort de l'évolution de son environnement légal, qui se poursuit d'ailleurs toujours à l'heure actuelle, quels sont les principaux enjeux et défis pour un investisseur étranger en Chine? Parmi différentes considérations, l'investisseur étranger doit s'intéresser particulièrement à la place qu'occupent les autorités gouvernementales dans les transactions privées, à la force obligatoire des ententes commerciales et à la résolution de conflits éventuels. Dans un second temps, la présente étude couvre les principales formes juridiques d'investissement accessibles aux investisseurs étrangers afin d'exploiter ou de participer à l'exploitation d'une entreprise en sol chinois. Il s'agit, pour chacune d'entre elles, d'analyser le droit positif posé par le législateur ainsi que de le compléter avec certains éléments pratiques soulevés par des observateurs en la matière. Il s'ensuivra une analyse des différents mécanismes d'acquisition d'entreprise par les investisseurs étrangers. Ultimement, l'étude de cette seconde partie mènera à une analyse comparative des incidences pratiques relativement aux différentes formes d'établissement ou d'acquisition d'entreprise.

L'arbitrage impliquant les personnes publiques : tendances et perspectives

Cette étude aborde la problématique de la participation des personnes morales de droit public à l’arbitrage à l’occasion des litiges relatifs aux relations qu’elles entretiennent avec les personnes privées étrangères. Par opportunisme économique, un certain nombre de pays développés et en développement se montrent tout à fait favorables à ce que l’État se soumette au contentieux arbitral. Dans d’autres pays, tels qu’en Amérique latine et dans le monde arabe, il se manifeste des tendances nettement hostiles gravitant entre l’interdiction totale et une adhésion conditionnelle de l’État à l’arbitrage. Deux écoles s’affrontent, celle des privatistes qui considèrent l’arbitre international comme le juge naturel du milieu des affaires, face à celle des étatistes qui postulent que les juridictions étatiques demeurent les seules habiles à connaitre souverainement des litiges opposants les personnes publiques à leur interlocuteur privé. Les raisons qui sous-tendent l’assouplissement de certains gouvernements vers un élan libéral de l’arbitrage en droit public, résultent du phénomène globalisant de l’économie qui tend à réduire à néant les règles internes des États dans le cadre du nouvel ordre économique mondial. Par contre, les conséquences sociales, financières et juridiques des sentences arbitrales portent certains gouvernements à adopter une position réfractaire à l’arbitrage mettant en cause les entités publiques. Ils brandissent le droit à l’autodétermination des peuples pour éviter le bradage de leurs ressources au détriment des droits économiques, sociaux et culturels de leurs populations, et ce, en dépit du fait que l’investissement direct étranger joue un rôle considérable dans le développement des pays en émergence. Notre défi ultime dans ce travail est d’explorer les diverses avenues permettant d’atteindre un juste équilibre entre les intérêts publics et la protection des investissements privés. Ceci exige un changement de paradigme qui prendra en compte les dimensions plurielles que constitue le contentieux investisseurs-États.

Los intereses estratégicos de EEUU, Rusia, China y Japón como determinantes de la estrategia de mantenimiento de la Estructura en la Península Coreana. 2003-2013.

El propósito principal de esta monografía es ofrecer una perspectiva crítica sobre el conflicto latente en la Península Coreana, haciendo un acercamiento al mismo desde un marco teórico asentado en el realismo estructural de Kenneth Waltz. De este modo, se busca responder a cuestiones sobre los intereses estatales como fundamento básico de las estrategias de mantenimiento de la Estructura en regiones geopolíticamente sensibles. Al final, se llega a la conclusión afirmando que la Estructura ejerce una serie de funciones para garantizar su preservación mediante una acción de convergencia en la conducta de los Estados. Esta realidad ha mantenido a la Península Coreana sin un conflicto bélico en los últimos 50 años, muy a pesar de estar al borde del mismo en varias ocasiones, ya que de llegarse a presentar se rompería la estabilidad de la región, y por ende el Equilibrio de Poderes estaría en grave riesgo.

Países en desarrollo y globalización: ¿Gandores o Perdedores?

El comercio internacional y los flujos de inversión se han incrementado en las últimas décadas más rápidamente que el producto interno bruto mundial. Este rápido crecimiento de las transacciones internacionales se conoce comúnmente como globalización. Este fenómeno puede ser visto como un dinamizador del crecimiento y desarrollo, en la medida en que los países tiendan a especializarse en la producción de aquellos bienes en los que tienen ventaja comparativa. Otros, por el contrario, argumentan que la globalización no ha contribuido al crecimiento mundial de manera homogénea, beneficiando solo a un número pequeño de paí- ses y dando lugar a la concentración de los flujos de comercio e inversión y a grandes inequidades. La evidencia muestra, sin embargo, que los efectos de la globalización en los países en desarrollo dependen de diversos factores, especialmente de las características de los países y de las regiones. Las ganancias en bienestar se deben más a las medidas de liberalización implementadas por los países, que a las concesiones de comercio otorgadas por los socios comerciales. Así mismo, la marginalización de algunos países de los mercados mundiales no es inherente al proceso de globalización. Esta se puede explicar más que todo por el tipo de polí- ticas domesticas implementadas por estos países. Algunos países en desarrollo han sido bastante exitosos en la implementación de una estrategia de desarrollo basada en la IED. En estos casos, las inversiones se han asociado con la rápida industrialización y una concomitante expansión de las exportaciones con alto valor tecnológico.

Public policy and foreign-based enterprises in Britain prior to the Second World War

This article examines the early evolution of British policy, prior to the Second World War. The British government adopted an ‘open’ policy towards foreign direct investment (FDI), despite periodic fears that some foreign acquisitions of UK firms in key sectors might be detrimental to the national interest, and a few ad hoc attempts to deal with particular instances of this kind. During the 1930s, when the inflow of foreign firms accelerated following Britain's adoption of general tariff protection, the government developed a sophisticated admissions policy, based on an assessment of the likely net benefit of each applicant to the British economy. Its limited regulatory powers were used to maximize the potential of immigrant firms for technology transfer, enhanced competition, industrial diversification, and employment creation (particularly in the depressed regions), while protecting British industries suffering from excess capacity.

Os impactos dos investimentos estrangeiros diretos na evolução da balança comercial brasileira no período pós-real

The purpose of the present study is to discuss the eventual relationship between foreign direct investment in Brazil and trade balance, considering the period after the beginning of "Plano Real" on 1994, which presented a new currency regime and a new profile of Brazilian macroeconomy. It is important to state that there is a controversial debate around the question, since those investments are seen as positive to receiving countries by some authors and negative by other ones. Those who are favorable, argue that the recent attitude assumed by a lot of companies towards internalization is changing the modus operandi in some markets, providing a much more competitive framework. It is also remarkable - they also mention - the potential advantages brought by these new strategies. On the other hand, some authors defend that it increases the exposure of the country that receives such resources, since the subsidiaries of those companies operate under marketing strategies of profit maximization, considered the competitive environment they face. We will go over these opinions troughout the study, trying also to capture the reasons that usually motivate foreign companies to look for new markets and branches and also the effects on receiving country's Balance of Payments. Besides that point, the approach presented will try to answer if the increase of foreign capital stock in Brazil helps to explain some positive response from the country's trade balance, and more, on Balance of Payments. It is also important to mention that the considered period is extremely representative, mainly when considered the huge amounts involved and the increasing liberalization verified in brazilian's external policies since 1990. There is special concern, troughout the study, to define the pattern of such investments, and more, the impacts that those resources brought to public budget. The present study will focus on official data, published by Central Bank of Brazil, mainly those ones regarding Census of Foreign Capitals, as well as the referable to the evolution of Balance of Payments. Finally, based on statistical procedures, it will be provided multiple regressions on available data that will help the reader to capture the effects of some selected variables, which will bring a much more oriented analysis to the discussion.