Challenging the production function approach to assess the developmental effects of FDI

From a theoretical point of view, it is traditionally assumed that foreign firms possess a centrally accumulated firm-specific technological advantage over domestic firms (see, for example, Findlay, 1978; Dunning, 1979). Given a sufficient level of absorptive capacity and human capital, domestic firms in host economies are able to benefit from various externalities stimulated by the presence of foreign firms.

The Philippines in the Aerospace Global Value Chain

This report uses the Duke CGGC Global Value Chain (GVC) framework to examine the role of the Philippines in the global aerospace industry and identify opportunities for the country to upgrade. The Philippines is a newcomer to the growing global aerospace manufacturing industry. Although the country has been host to a major flight controls manufacturer since 1985, the industry really only began to expand within the past five to ten years. During this recent period (2007-2014), the country has rapidly ramped up its aerospace manufacturing exports, reaching US$604 million in 2014 and more than tripling employment. The industry now employs 3,000 full time and 3,000 part time workers. Although still a very small player, accounting for less than 0.15% of the global industry, this incipient growth is promising. Both foreign firms and local suppliers that have established operations in the industry have already achieved some degree of upgrading within a short timeframe. These include expanding the product lines served, obtaining essential process certifications and upgrading beyond basic assembly operations to undertake additional manufacturing processes such as machining as well as initiating procurement and engineering functions in country.

Services Procurement under the WTO’s Agreement on Government Procurement: Whither Market Access?

This paper studies the government procurement of services from foreign suppliers by conducting a statistical analysis of data submitted by Japan and Switzerland to the WTO's Committee on Government Procurement. Using several metrics, the paper examines if the WTO’s Agreement on Government Procurement (GPA) has led to greater market access for foreign suppliers in services procurement. Our results indicate that despite the GPA, the proportions of services contracts awarded to foreigners have declined over time for both countries and in the absence of this decline, the value of services contracts awarded to foreign firms would have been more than 15 times higher in the case of Japan and nearly 68 times more in the case of Switzerland. We also find that for the same services categories, at least the Japanese government is not purchasing as much from abroad as it's private sector is importing from the rest of the world, a finding that further points to the home-bias in that government's public purchase decisions.

The Branches of Large Electricity Companies in Portugal: From Trade to the Transfer and Adaptation of Technology (20th Century)

In the last decade of the 19th and first decades of the 20th century there was a movement of capital and engineers from the central and northern Europe to the countries of southern Europe and other continents. Large companies sought to obtain concessions and establish branches in Portugal, favouring the circulation of technical knowledge and transfer of technology for Portuguese industry. Among the various examples of the representatives of foreign companies in Portugal we find Jayme da Costa Ltd. established in 1916 in Lisbon, which was a branch of the Swedish company ASEA, as well as STAAL, ATLAS DIESEL (Sweden), Landis & GYR (Switzerland), Electro Helios, etc.. Another example is EFACEC a company founded in 1948 in Porto, that was a partnership between the Portuguese company CUF – Companhia União Fabril, and ACEC – Ateliers de Constructions Électriques de Charleroi and a small entreprise Electro-Moderna Ldª. This enterprise started the industrial production of electric motors and transformers, and later on acquired a substantial share of the national production of electrical equipment. Using Estatística das Instalações Elétricas em Portugal (Statistics on Electrical Installations in Portugal) from 1928 until 1950 we can identify the foreign enterprises acting in the Portuguese market: Siemens, B.B.C, ASEA, Oerlikon, etc. We can also establish a relationship between the development of the electric network and the growth of production and consumption of electricity in the principal urban centres. Finally we see how foreign firms were a stimulus to the creation of national enterprises, especially those of small scale, in Portugal.

The impact of sizeof the firm and exchange rate in the export propensity of domestic and foreign owned firms in a developing country: A study of the Brazilian exporters

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

Winning in Brazil: how institutional voids affect the entry decision making process of foreign venture capital firms coming to Brazil

The master thesis for the achievement of the academic status master of science in international management (MPGI) will aim to solve the research question of how institutional voids affect the entry decision-making process of foreign venture capital firms coming to Brazil. This is a timely matter since in the past years there has been a sudden eruption of foreign VC involvement in Brazil. Based on the actionable framework by Khanna and Palpeu (2010) we conducted quantitative as well as qualitative research with two sets of interview partners in a two-phase analysis. We interviewed experts from VC firms, foreign VC firms based in Brazil and perspective VC firms that are looking to come to Brazil. We started with the former, derived lessons learned and analyzed how they affect the latter in reaching a decision. As we expected we found that depending on the industry that ventures are in, institutional voids can either pose an opportunity or a threat and hence attract or push away potential VC firms entering Brazil. Opportunities exist especially when exploiting institutional voids, for example through ventures in the marketplace efficiency. Threats are posed by investments in for instance hard infrastructure, where the economic, political and judicial systems as well as corruption and bureaucracy play demanding roles.

The analysis of foreign market entry strategies on the basis of different cultural backgrounds and environments: a qualitative study characterising the differences and similarities of Brazilian and European firms

Moving into a new and foreign market can be challenging, especially when such market has a different culture and working environment in comparison to the home market. Thus, it is of utter importance to adjust a company’s strategy to the new market conditions. Currently, there are no concrete guidelines of what aspects are most important when moving from a developing market such as Brazil into a more sophisticated market like Europe, or vice versa. The present study will examine two companies from the same industry, but with different cultural backgrounds and its strategic similarities and differences for operating in multiple international markets. The data was collected via semi-structured interviews with the Chief Executive Officers (CEOs’) from both companies, using an interview guideline that is based on three different theoretical frameworks. The aim is to give recommendations to these two industries of how to efficiently use existing theoretical frameworks and which aspects are most significant when moving into a new market while keeping in mind a company’s size and background.

A new institutional approach to Japanese firms' foreign direct investment under free trade agreements

This paper examines the determinants of foreign direct investment (FDI) under free trade agreements (FTAs) from a new institutional perspective. First, the determinants of FDI are theoretically discussed from a new institutional perspective. Then, FDI is statistically analyzed at the aggregate level. Kernel density estimation of firm-size reveals some evidence of "structural changes" after FTAs, as characterized by the investing firms' paid-up capital stock. Statistical tests of the average and variance of the size distribution confirm this in the case of FTAs with Asian partner countries. For FTAs with South American partner countries, the presence of FTAs seems to promote larger-scale FDIs. These results remain correlational instead of causal, and more statistical analyses would be needed to infer causality. Policy implications suggest that participants should consider "institutional" aspects of FTAs, that is, the size matters as a determinant of FDI. Future work along this line is needed to study "firm heterogeneity."

American and foreign stock exchange practice, stock and bond trading, and the business corporation laws of all nations, together with local regulations, laws, fees and taxes affecting American firms and corporations carrying on business in any other states of the U.S.A., or establishing branches or agencies in foreign countries.

"This book is no. B. 105."

Foreign investment and licensing checklist for U.S. firms.

Mode of access: Internet.