Robert J. Flanagan
- Published in print:
- 2006
- Published Online:
- September 2006
- ISBN:
- 9780195306002
- eISBN:
- 9780199783564
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195306007.003.0006
- Subject:
- Economics and Finance, International
This chapter studies the effects of multinational companies on labor conditions around the world. The evidence shows that (1) the economic presence of multinationals in foreign countries is often ...
More
This chapter studies the effects of multinational companies on labor conditions around the world. The evidence shows that (1) the economic presence of multinationals in foreign countries is often overstated, (2) multinationals pay higher wages than host-country companies in both industrialized and developing countries, and (3) when multinationals acquire host country businesses, they institute changes in production methods and human resource management practices that raise productivity sufficiently to support higher wages. The evidence also rejects the race-to-the-bottom view that poor labor conditions attract multinational companies. Most flows of foreign direct investment occur between advanced countries with high labor standards and are influenced by market size and potential investment risk rather than labor conditions. The chapter also examines and evaluates the efficacy of corporate codes of conduct for improving labor conditions.Less
This chapter studies the effects of multinational companies on labor conditions around the world. The evidence shows that (1) the economic presence of multinationals in foreign countries is often overstated, (2) multinationals pay higher wages than host-country companies in both industrialized and developing countries, and (3) when multinationals acquire host country businesses, they institute changes in production methods and human resource management practices that raise productivity sufficiently to support higher wages. The evidence also rejects the race-to-the-bottom view that poor labor conditions attract multinational companies. Most flows of foreign direct investment occur between advanced countries with high labor standards and are influenced by market size and potential investment risk rather than labor conditions. The chapter also examines and evaluates the efficacy of corporate codes of conduct for improving labor conditions.
Young‐Iob Chung
- Published in print:
- 2006
- Published Online:
- September 2006
- ISBN:
- 9780195178302
- eISBN:
- 9780199783557
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195178300.003.0007
- Subject:
- Economics and Finance, South and East Asia
This chapter examines the mobilization of the savings/resources of both foreign and domestic sources for investment in both the public and private sectors. The foreign sources of resources/savings ...
More
This chapter examines the mobilization of the savings/resources of both foreign and domestic sources for investment in both the public and private sectors. The foreign sources of resources/savings examined are foreign direct investment, Japanese government grants, and foreign loans, which were largely supplied by Japan, in addition to the savings of both the Japanese and Koreans in Korea. The domestic savings examined are the sources of owners' equity and loans of financial institutions, which may be traced to the savings of both Japanese and Koreans. These have increased over time partly due to the enforcement of the government savings policy. The credit policies of the financial institutions are examined, which directed the mobilized savings to certain targeted industries under the government's guidance. Other facets of mobilization of savings for investment analyzed include: Who supplied the most resources/savings for investment, and to what extent? Who were the borrowers and in what sectors? What were the terms of loans? Who financed them? These analyses may provide insight to capital formation and motives for financing investment in Korea.Less
This chapter examines the mobilization of the savings/resources of both foreign and domestic sources for investment in both the public and private sectors. The foreign sources of resources/savings examined are foreign direct investment, Japanese government grants, and foreign loans, which were largely supplied by Japan, in addition to the savings of both the Japanese and Koreans in Korea. The domestic savings examined are the sources of owners' equity and loans of financial institutions, which may be traced to the savings of both Japanese and Koreans. These have increased over time partly due to the enforcement of the government savings policy. The credit policies of the financial institutions are examined, which directed the mobilized savings to certain targeted industries under the government's guidance. Other facets of mobilization of savings for investment analyzed include: Who supplied the most resources/savings for investment, and to what extent? Who were the borrowers and in what sectors? What were the terms of loans? Who financed them? These analyses may provide insight to capital formation and motives for financing investment in Korea.
Young‐Iob Chung
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780195325454
- eISBN:
- 9780199783908
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195325454.003.0008
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter estimates the overall net foreign savings and resources brought into the country, and their contribution to domestic saving beyond meeting consumption needs and providing foreign ...
More
This chapter estimates the overall net foreign savings and resources brought into the country, and their contribution to domestic saving beyond meeting consumption needs and providing foreign exchange. This is followed by a more focused study of foreign direct investment as a source of increasing investment in the country. Following a review of the government FDI policies and its development in stages, the characteristics of FDI, the scale, and the extent of joint ownership with local investors are investigated. This is supplemented with an assessment of its economic impact on domestic investment, employment, economic growth, economic stability, balance of payments, and its contribution to the technological advancement of the country's manufacturing firms. The chapter also evaluates the effectiveness of the government's past FDI policies and presents a brief survey of the challenges facing South Korea's future FDI policy.Less
This chapter estimates the overall net foreign savings and resources brought into the country, and their contribution to domestic saving beyond meeting consumption needs and providing foreign exchange. This is followed by a more focused study of foreign direct investment as a source of increasing investment in the country. Following a review of the government FDI policies and its development in stages, the characteristics of FDI, the scale, and the extent of joint ownership with local investors are investigated. This is supplemented with an assessment of its economic impact on domestic investment, employment, economic growth, economic stability, balance of payments, and its contribution to the technological advancement of the country's manufacturing firms. The chapter also evaluates the effectiveness of the government's past FDI policies and presents a brief survey of the challenges facing South Korea's future FDI policy.
Steffen Hindelang
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780199572656
- eISBN:
- 9780191705540
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199572656.001.0001
- Subject:
- Law, EU Law
The book presents a coherent doctrinal construction of the EC Treaty provisions on free movement of capital in a third-country context with a focus on direct investment. The respective regime ...
More
The book presents a coherent doctrinal construction of the EC Treaty provisions on free movement of capital in a third-country context with a focus on direct investment. The respective regime applicable to intra-Community capital movement serves as a point of reference and a benchmark and, thus, is also part of a substantial review. The central question of the study is: What rights does a private market participant, engaged in cross border direct investment originating from or directed to a non EC Member State, enjoy by virtue of Article 56 EC et seqq.? The book argues that in principle, the provisions on free movement of capital apply the same liberal standards irrespective of whether intra-Community or third country direct investment is involved. Hence, those who participate in third country direct investment enjoy essentially the same guarantees by virtue of the provisions on free movement of capital as those active in intra-Community direct investment. The book's subject matter is highly topical and of considerable relevance. Currently, neo protectionist ideas are on the rise within the Member States of the EC. The Member States face considerable problems in acclimating themselves to increasing inward direct investment originating from developing and emerging market countries. Scepticism increases, at times bordering on irrational blunt hostility, if an investment is placed by a so called sovereign wealth fund headquartered in an emerging market. Political opinion after a very emotional debate has been strong enough that some Member States have started tightening their regulatory framework on foreign direct investment. However, such protectionist regulatory measures restricting the admission and treatment of foreign direct investment cannot be imposed ad libitum. They must be measured against the freedom of capital movement.Less
The book presents a coherent doctrinal construction of the EC Treaty provisions on free movement of capital in a third-country context with a focus on direct investment. The respective regime applicable to intra-Community capital movement serves as a point of reference and a benchmark and, thus, is also part of a substantial review. The central question of the study is: What rights does a private market participant, engaged in cross border direct investment originating from or directed to a non EC Member State, enjoy by virtue of Article 56 EC et seqq.? The book argues that in principle, the provisions on free movement of capital apply the same liberal standards irrespective of whether intra-Community or third country direct investment is involved. Hence, those who participate in third country direct investment enjoy essentially the same guarantees by virtue of the provisions on free movement of capital as those active in intra-Community direct investment. The book's subject matter is highly topical and of considerable relevance. Currently, neo protectionist ideas are on the rise within the Member States of the EC. The Member States face considerable problems in acclimating themselves to increasing inward direct investment originating from developing and emerging market countries. Scepticism increases, at times bordering on irrational blunt hostility, if an investment is placed by a so called sovereign wealth fund headquartered in an emerging market. Political opinion after a very emotional debate has been strong enough that some Member States have started tightening their regulatory framework on foreign direct investment. However, such protectionist regulatory measures restricting the admission and treatment of foreign direct investment cannot be imposed ad libitum. They must be measured against the freedom of capital movement.
Angelos Dimopoulos
- Published in print:
- 2011
- Published Online:
- January 2012
- ISBN:
- 9780199698608
- eISBN:
- 9780191732140
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199698608.003.0002
- Subject:
- Law, EU Law, Competition Law
Chapter 1 provides the conceptual and normative framework within which this book is developed. It begins with setting out the international law context within which EU foreign investment law is born, ...
More
Chapter 1 provides the conceptual and normative framework within which this book is developed. It begins with setting out the international law context within which EU foreign investment law is born, focusing on the socio-economic reasons that require international regulation of foreign investment and the historical evolution of international investment law. The second part is dedicated to the quest for a definition of foreign investment, aiming to consolidate the divergent definitions of foreign investment that are found in international investment law and EU law. Thirdly, this chapter identifies the regulatory scope and the sources of EU foreign investment law, stressing the divergent focus of EU regulation on different aspects of foreign investment.Less
Chapter 1 provides the conceptual and normative framework within which this book is developed. It begins with setting out the international law context within which EU foreign investment law is born, focusing on the socio-economic reasons that require international regulation of foreign investment and the historical evolution of international investment law. The second part is dedicated to the quest for a definition of foreign investment, aiming to consolidate the divergent definitions of foreign investment that are found in international investment law and EU law. Thirdly, this chapter identifies the regulatory scope and the sources of EU foreign investment law, stressing the divergent focus of EU regulation on different aspects of foreign investment.
Márcia Tavares
- Published in print:
- 2007
- Published Online:
- January 2008
- ISBN:
- 9780199233755
- eISBN:
- 9780191715549
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199233755.003.0003
- Subject:
- Business and Management, International Business
This chapter describes recent trends in the internationalization of Latin American companies through foreign direct investment (FDI). Focusing on the larger Latin American investors, the chapter ...
More
This chapter describes recent trends in the internationalization of Latin American companies through foreign direct investment (FDI). Focusing on the larger Latin American investors, the chapter undertakes a qualitative analysis of how outward investment has contributed to the competitiveness of Latin American firms; the factors that are specific to the Latin American business environment that have contributed to the success of the region's firms in their direct investments abroad; and the main challenges faced by these companies when investing outside their home countries. The analysis is based on interviews of firms in Argentina, Brazil, Chile, and Mexico conducted by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), as well as publicly available corporate information and secondary sources.Less
This chapter describes recent trends in the internationalization of Latin American companies through foreign direct investment (FDI). Focusing on the larger Latin American investors, the chapter undertakes a qualitative analysis of how outward investment has contributed to the competitiveness of Latin American firms; the factors that are specific to the Latin American business environment that have contributed to the success of the region's firms in their direct investments abroad; and the main challenges faced by these companies when investing outside their home countries. The analysis is based on interviews of firms in Argentina, Brazil, Chile, and Mexico conducted by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), as well as publicly available corporate information and secondary sources.
Steffen Hindelang
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780199572656
- eISBN:
- 9780191705540
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199572656.003.0003
- Subject:
- Law, EU Law
This chapter first develops this book's understanding of the notions of ‘capital’ and ‘movement of capital’, two legal concepts that are heavily infused with economic content. Characterizing free ...
More
This chapter first develops this book's understanding of the notions of ‘capital’ and ‘movement of capital’, two legal concepts that are heavily infused with economic content. Characterizing free movement of capital as an ‘object-related production factor freedom’ — hence it is the cross border movement of capital itself, not that of its holder, which is liberalized by virtue of Article 56 (1) EC — the chapter attends to the issue of how to localize capital and the related problem of construction of the cross border element in the ambit of the freedom of capital movement. Second, arriving at the ‘object of investigation’ of this study, this chapter builds up and forms a definition of the concepts of ‘direct investment’ and ‘foreign direct investment’; the latter referring to such ‘direct investment’ originating from or directed towards non EC countries.Less
This chapter first develops this book's understanding of the notions of ‘capital’ and ‘movement of capital’, two legal concepts that are heavily infused with economic content. Characterizing free movement of capital as an ‘object-related production factor freedom’ — hence it is the cross border movement of capital itself, not that of its holder, which is liberalized by virtue of Article 56 (1) EC — the chapter attends to the issue of how to localize capital and the related problem of construction of the cross border element in the ambit of the freedom of capital movement. Second, arriving at the ‘object of investigation’ of this study, this chapter builds up and forms a definition of the concepts of ‘direct investment’ and ‘foreign direct investment’; the latter referring to such ‘direct investment’ originating from or directed towards non EC countries.
Peter Scott
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780199226009
- eISBN:
- 9780191710315
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199226009.003.0007
- Subject:
- Business and Management, Business History
Foreign-owned enterprises have long played a particularly important role in the British economy, particularly in manufacturing. Concentrated in high-growth sectors, they were widely viewed as having ...
More
Foreign-owned enterprises have long played a particularly important role in the British economy, particularly in manufacturing. Concentrated in high-growth sectors, they were widely viewed as having superior attributes to domestic incumbents regarding a broad range of managerial competencies which, policy-makers hoped, might diffuse to British firms. This chapter reviews the role and impact of overseas multinationals in Britain over the 20th century, in the context of changing perceptions regarding Britain's relative competitiveness. In the era of Britain's relative economic decline, the success of overseas multinationals on UK soil appeared to challenge simplistic neoclassical explanations of slow British growth — framed in terms of unsuitable factor costs or market conditions for mass production. While multinationals generally failed to achieve the productivity performance of their parent plants (a phenomenon typical of multinationals the world over) they nevertheless performed markedly better than British firms which — according to such arguments — had production techniques more suited to British conditions. Yet, while the British economy has improved its relative performance over the past twenty five years, analyses of the net impacts of inward investment have become much more pessimistic. The chapter seeks to explain this apparent decline in the magnitude of positive ‘spin offs’ from inward investment, during a period when Britain has enjoyed renewed vitality and the technological (and, perhaps, managerial) gap between UK industries and international best practice has narrowed.Less
Foreign-owned enterprises have long played a particularly important role in the British economy, particularly in manufacturing. Concentrated in high-growth sectors, they were widely viewed as having superior attributes to domestic incumbents regarding a broad range of managerial competencies which, policy-makers hoped, might diffuse to British firms. This chapter reviews the role and impact of overseas multinationals in Britain over the 20th century, in the context of changing perceptions regarding Britain's relative competitiveness. In the era of Britain's relative economic decline, the success of overseas multinationals on UK soil appeared to challenge simplistic neoclassical explanations of slow British growth — framed in terms of unsuitable factor costs or market conditions for mass production. While multinationals generally failed to achieve the productivity performance of their parent plants (a phenomenon typical of multinationals the world over) they nevertheless performed markedly better than British firms which — according to such arguments — had production techniques more suited to British conditions. Yet, while the British economy has improved its relative performance over the past twenty five years, analyses of the net impacts of inward investment have become much more pessimistic. The chapter seeks to explain this apparent decline in the magnitude of positive ‘spin offs’ from inward investment, during a period when Britain has enjoyed renewed vitality and the technological (and, perhaps, managerial) gap between UK industries and international best practice has narrowed.
RUMU SARKAR
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780195398281
- eISBN:
- 9780199866366
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195398281.003.007
- Subject:
- Law, Human Rights and Immigration, Public International Law
This chapter examines emerging capital economies from the perspective of creating the new success stories in the developing world. It focuses on the underlying (legal) causes for such successes and ...
More
This chapter examines emerging capital economies from the perspective of creating the new success stories in the developing world. It focuses on the underlying (legal) causes for such successes and the impediments thereto. The perspective of international finance (e.g., foreign direct and foreign portfolio investment), and their relative pitfalls are examined along with a sea change in investment patterns as may be discerned from sovereign wealth funds, and other related issues. Financing private infrastructure projects, the access to private bond and equity markets, and the dangers of global financial contagion are all explored. Finally, the need for the prudential and legal regulation of private equity markets, and related issues, are examined in the context of furthering development objectives.Less
This chapter examines emerging capital economies from the perspective of creating the new success stories in the developing world. It focuses on the underlying (legal) causes for such successes and the impediments thereto. The perspective of international finance (e.g., foreign direct and foreign portfolio investment), and their relative pitfalls are examined along with a sea change in investment patterns as may be discerned from sovereign wealth funds, and other related issues. Financing private infrastructure projects, the access to private bond and equity markets, and the dangers of global financial contagion are all explored. Finally, the need for the prudential and legal regulation of private equity markets, and related issues, are examined in the context of furthering development objectives.
Olivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann, and Thierry Verdier
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199290482
- eISBN:
- 9780191603471
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199290482.003.0005
- Subject:
- Economics and Finance, International
Little analytical attention has so far been devoted to the issue of rules of origin in a services and investment context. This chapter wades into this largely uncharted territory by advancing a few ...
More
Little analytical attention has so far been devoted to the issue of rules of origin in a services and investment context. This chapter wades into this largely uncharted territory by advancing a few thoughts on a range of economic and legal considerations arising from the way in which various agreements seek to determine and condition who gets to benefit from services trade and investment liberalization. It focuses on the practice of preferential and non-preferential services trade liberalization as found in various bilateral and regional trade and investment agreements as well as the World Trade Organization’s (WTO) General Agreement on Trade in Services (GATS). It addresses a range of conceptual issues relating to services trade that impinge upon the design and implementation of rules of origin for services. The discussion draws attention to a number of salient characteristics of trade in services that limit the usefulness of concepts and approaches to origin developed in the context of trade in goods. Attention is also drawn to a number of economic considerations that should inform the design of rules of origin for services trade to minimize the potentially adverse effects of trade and investment diversion, and maximize the economy-wide gains in allocative efficiency that well-designed services liberalization can entail.Less
Little analytical attention has so far been devoted to the issue of rules of origin in a services and investment context. This chapter wades into this largely uncharted territory by advancing a few thoughts on a range of economic and legal considerations arising from the way in which various agreements seek to determine and condition who gets to benefit from services trade and investment liberalization. It focuses on the practice of preferential and non-preferential services trade liberalization as found in various bilateral and regional trade and investment agreements as well as the World Trade Organization’s (WTO) General Agreement on Trade in Services (GATS). It addresses a range of conceptual issues relating to services trade that impinge upon the design and implementation of rules of origin for services. The discussion draws attention to a number of salient characteristics of trade in services that limit the usefulness of concepts and approaches to origin developed in the context of trade in goods. Attention is also drawn to a number of economic considerations that should inform the design of rules of origin for services trade to minimize the potentially adverse effects of trade and investment diversion, and maximize the economy-wide gains in allocative efficiency that well-designed services liberalization can entail.
Deborah L. Swenson
- Published in print:
- 2009
- Published Online:
- May 2009
- ISBN:
- 9780195388534
- eISBN:
- 9780199855322
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195388534.003.0016
- Subject:
- Law, Public International Law
This chapter examines the correlation between previous foreign investment and the signing of bilateral investment treaties (BITs) to explore whether there is any evidence that the signing of BITs is ...
More
This chapter examines the correlation between previous foreign investment and the signing of bilateral investment treaties (BITs) to explore whether there is any evidence that the signing of BITs is investor-driven. It also looks at how BITs affect the flow of investments between countries when a wide range of controls for the economic environment, such as home and host GDP, wage rates, and risk measures are considered. The chapter identifies two factors that are likely to influence the observed benefits of country decisions to enter into BITs. First, although treaties are viewed as forward-looking tools that are signed to gain future investments, treaty signing also has a backward-looking element. In particular, countries that had already received larger stocks of foreign investment are more likely to sign BITs than countries that had been less successful in attracting foreign investment. This result suggests that the interest of exiting foreign investors drove the signing of BITs, at least in part. The second conclusion of this chapter is that controls for timing, intrinsic country attractiveness, and investor identity are all important. When these issues are addressed, BIT signing did help developing countries attract a larger volume of foreign investment.Less
This chapter examines the correlation between previous foreign investment and the signing of bilateral investment treaties (BITs) to explore whether there is any evidence that the signing of BITs is investor-driven. It also looks at how BITs affect the flow of investments between countries when a wide range of controls for the economic environment, such as home and host GDP, wage rates, and risk measures are considered. The chapter identifies two factors that are likely to influence the observed benefits of country decisions to enter into BITs. First, although treaties are viewed as forward-looking tools that are signed to gain future investments, treaty signing also has a backward-looking element. In particular, countries that had already received larger stocks of foreign investment are more likely to sign BITs than countries that had been less successful in attracting foreign investment. This result suggests that the interest of exiting foreign investors drove the signing of BITs, at least in part. The second conclusion of this chapter is that controls for timing, intrinsic country attractiveness, and investor identity are all important. When these issues are addressed, BIT signing did help developing countries attract a larger volume of foreign investment.
Ross Brown and Philip Raines
- Published in print:
- 2002
- Published Online:
- November 2003
- ISBN:
- 9780199250011
- eISBN:
- 9780191596216
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199250014.003.0018
- Subject:
- Economics and Finance, International
Begins with an overview of foreign investment promotion in Western Europe by examining the importance of attracting investment as a goal from a national‐level perspective, emphasizing the change in ...
More
Begins with an overview of foreign investment promotion in Western Europe by examining the importance of attracting investment as a goal from a national‐level perspective, emphasizing the change in attitudes that has taken place over the last decade; this section also includes a brief overview of the role of the European Commission in controlling competition between EU member states. Following this, the motives and policy instruments underpinning sub‐national actors in promoting foreign direct investment (FDI) in Western Europe are examined. To show these processes at work, case studies are used to compare the promotional policies of two European regions with very different approaches to attracting investment: Scotland and Nordrhein‐Westfalen. The final section addresses the future of FDI promotion policy.Less
Begins with an overview of foreign investment promotion in Western Europe by examining the importance of attracting investment as a goal from a national‐level perspective, emphasizing the change in attitudes that has taken place over the last decade; this section also includes a brief overview of the role of the European Commission in controlling competition between EU member states. Following this, the motives and policy instruments underpinning sub‐national actors in promoting foreign direct investment (FDI) in Western Europe are examined. To show these processes at work, case studies are used to compare the promotional policies of two European regions with very different approaches to attracting investment: Scotland and Nordrhein‐Westfalen. The final section addresses the future of FDI promotion policy.
Magnus Blomström, Steven Globerman, and Ari Kokko
- Published in print:
- 2002
- Published Online:
- November 2003
- ISBN:
- 9780199250011
- eISBN:
- 9780191596216
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199250014.003.0006
- Subject:
- Economics and Finance, International
It is suggested that the most serious challenge facing a study of the relationship between regional integration and foreign direct investment is the multidimensional nature of the issue. In ...
More
It is suggested that the most serious challenge facing a study of the relationship between regional integration and foreign direct investment is the multidimensional nature of the issue. In particular, there is reason to believe that the relevant linkages will vary between different integration agreements, and between countries and industries participating in any specific agreement. This chapter therefore sets out some broad theoretical considerations surrounding the linkages between regional integration agreements and foreign direct investment. It then refines these broad considerations into a more focused framework that accounts for some indirect linkages that have, hitherto, been largely ignored in the relevant literature. A brief examination is then made of three recent, and very distinct, cases of regional integration in North and South America with reference to the framework already discussed: Canada joining CUSFTA (the Canada–USA Free Trade Agreement); Mexico's accession to NAFTA (North American Free Trade Agreement); and the first stage of integration in MERCOSUR (Mercado Comun del Sur).Less
It is suggested that the most serious challenge facing a study of the relationship between regional integration and foreign direct investment is the multidimensional nature of the issue. In particular, there is reason to believe that the relevant linkages will vary between different integration agreements, and between countries and industries participating in any specific agreement. This chapter therefore sets out some broad theoretical considerations surrounding the linkages between regional integration agreements and foreign direct investment. It then refines these broad considerations into a more focused framework that accounts for some indirect linkages that have, hitherto, been largely ignored in the relevant literature. A brief examination is then made of three recent, and very distinct, cases of regional integration in North and South America with reference to the framework already discussed: Canada joining CUSFTA (the Canada–USA Free Trade Agreement); Mexico's accession to NAFTA (North American Free Trade Agreement); and the first stage of integration in MERCOSUR (Mercado Comun del Sur).
Karl P. Sauvant and Lisa E. Sachs
- Published in print:
- 2009
- Published Online:
- May 2009
- ISBN:
- 9780195388534
- eISBN:
- 9780199855322
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195388534.001.0001
- Subject:
- Law, Public International Law
In recent years, the treaties and strategies promoting global investment have changed dramatically. The widespread liberalization of economic policy has effectively spurred an increase in foreign ...
More
In recent years, the treaties and strategies promoting global investment have changed dramatically. The widespread liberalization of economic policy has effectively spurred an increase in foreign direct investment (FDI). By encouraging foreign investors to enter international markets, many countries are witnessing exponential growth within their economies and local industries. The surge of FDI not only brings capital for emerging or growing industries, but it is also capable of boosting the country's economy by creating greater access to financing, more job opportunities, and potential knowledge and technology spillovers. The basic purpose of concluding bilateral investment treaties (BITs) and double taxation treaties (DTTs) is to signal to investors that investments will be legally protected under international law in case of political turmoil and to mitigate the possibility of double taxation of foreign entities. But the actual effect of BITs and DTTs on the flows of foreign direct investment is debatable. This book assesses the performance of these treaties, and presents the most recent literature on BITs and DTTs and their impact on foreign investments.Less
In recent years, the treaties and strategies promoting global investment have changed dramatically. The widespread liberalization of economic policy has effectively spurred an increase in foreign direct investment (FDI). By encouraging foreign investors to enter international markets, many countries are witnessing exponential growth within their economies and local industries. The surge of FDI not only brings capital for emerging or growing industries, but it is also capable of boosting the country's economy by creating greater access to financing, more job opportunities, and potential knowledge and technology spillovers. The basic purpose of concluding bilateral investment treaties (BITs) and double taxation treaties (DTTs) is to signal to investors that investments will be legally protected under international law in case of political turmoil and to mitigate the possibility of double taxation of foreign entities. But the actual effect of BITs and DTTs on the flows of foreign direct investment is debatable. This book assesses the performance of these treaties, and presents the most recent literature on BITs and DTTs and their impact on foreign investments.
Milada Anna Vachudova
- Published in print:
- 2005
- Published Online:
- April 2005
- ISBN:
- 9780199241194
- eISBN:
- 9780191602382
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199241198.003.0003
- Subject:
- Political Science, European Union
The empirical variation between the political trajectories of Poland, Hungary, and the Czech Republic, on the one hand, and Romania, Bulgaria, and Slovakia, on the other, is striking in the early ...
More
The empirical variation between the political trajectories of Poland, Hungary, and the Czech Republic, on the one hand, and Romania, Bulgaria, and Slovakia, on the other, is striking in the early 1990s. The presence or absence of an opposition to communism strong enough to take and hold power in 1989 put the first group of states on the road to liberal democracy, and the second group on the road to illiberal democracy. This chapter compares the two groups of states in three areas: the nature of the opposition to communism and of the regime change in 1989; the political, economic, and national policies of the first post-communist governments; and the quality of the left alternative available to voters after1989.Less
The empirical variation between the political trajectories of Poland, Hungary, and the Czech Republic, on the one hand, and Romania, Bulgaria, and Slovakia, on the other, is striking in the early 1990s. The presence or absence of an opposition to communism strong enough to take and hold power in 1989 put the first group of states on the road to liberal democracy, and the second group on the road to illiberal democracy. This chapter compares the two groups of states in three areas: the nature of the opposition to communism and of the regime change in 1989; the political, economic, and national policies of the first post-communist governments; and the quality of the left alternative available to voters after1989.
Milada Anna Vachudova
- Published in print:
- 2005
- Published Online:
- April 2005
- ISBN:
- 9780199241194
- eISBN:
- 9780191602382
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199241198.003.0008
- Subject:
- Political Science, European Union
In all candidate states, the EU’s active leverage forced governments to embark on politically difficult reforms of the state and of the economy, committing politicians to a predictable agenda of ...
More
In all candidate states, the EU’s active leverage forced governments to embark on politically difficult reforms of the state and of the economy, committing politicians to a predictable agenda of economic liberalization. This happened not only because of straightforward conditionality but also because the pre-accession process served as a credible commitment to economic reform and as an impetus for the growth of pro-EU groups in society. The Czech Republic stands out as a hybrid case that experienced a greater concentration (and abuse) of political and economic power than Poland or Hungary, forcing it to change more dramatically in response to the EU’s active leverage. In the post-illiberal states, keeping ruling elites within the parameters set by the EU’s pre-accession process while locking all mainstream political parties into a pro-EU orientation signifies a great success. This chapter analyses the convergence of domestic politics in Slovakia, Bulgaria, and Romania after more liberal elites took power, and also explains the significant and persistent variation in the performance of the three states in implementing comprehensive reforms.Less
In all candidate states, the EU’s active leverage forced governments to embark on politically difficult reforms of the state and of the economy, committing politicians to a predictable agenda of economic liberalization. This happened not only because of straightforward conditionality but also because the pre-accession process served as a credible commitment to economic reform and as an impetus for the growth of pro-EU groups in society. The Czech Republic stands out as a hybrid case that experienced a greater concentration (and abuse) of political and economic power than Poland or Hungary, forcing it to change more dramatically in response to the EU’s active leverage. In the post-illiberal states, keeping ruling elites within the parameters set by the EU’s pre-accession process while locking all mainstream political parties into a pro-EU orientation signifies a great success. This chapter analyses the convergence of domestic politics in Slovakia, Bulgaria, and Romania after more liberal elites took power, and also explains the significant and persistent variation in the performance of the three states in implementing comprehensive reforms.
Lorna H. Wallace
- Published in print:
- 2002
- Published Online:
- November 2003
- ISBN:
- 9780199250011
- eISBN:
- 9780191596216
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199250014.003.0009
- Subject:
- Economics and Finance, International
The industrial distribution of inbound foreign direct investment (FDI) within a national economy is uneven, differing among and also within the subnational units. This chapter analyses the impact of ...
More
The industrial distribution of inbound foreign direct investment (FDI) within a national economy is uneven, differing among and also within the subnational units. This chapter analyses the impact of the globalization of production and markets at the subnational level by studying FDI in the state of New Jersey (NJ), USA. A summary is presented of quantitative statistics, analysing the trends, significance, concentration, and source of FDI in the state. Next, the determinants of FDI in the state are examined from an academic and business literature view as well as from interviews with practitioners; in addition, the policy implications for corporate practitioners and the role of government in the attraction, development, and retention of inbound FDI to the state are briefly addressed. Finally, it is argued that the intranational distribution of inward FDI stock provides a sensitive guide to the resources, capabilities, and policies of subnational units; and that a national analysis of FDI may not be sufficient or necessary to understand the drivers of international economy.Less
The industrial distribution of inbound foreign direct investment (FDI) within a national economy is uneven, differing among and also within the subnational units. This chapter analyses the impact of the globalization of production and markets at the subnational level by studying FDI in the state of New Jersey (NJ), USA. A summary is presented of quantitative statistics, analysing the trends, significance, concentration, and source of FDI in the state. Next, the determinants of FDI in the state are examined from an academic and business literature view as well as from interviews with practitioners; in addition, the policy implications for corporate practitioners and the role of government in the attraction, development, and retention of inbound FDI to the state are briefly addressed. Finally, it is argued that the intranational distribution of inward FDI stock provides a sensitive guide to the resources, capabilities, and policies of subnational units; and that a national analysis of FDI may not be sufficient or necessary to understand the drivers of international economy.
Edward M. Graham
- Published in print:
- 1999
- Published Online:
- November 2003
- ISBN:
- 9780198296058
- eISBN:
- 9780191596209
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198296053.003.0018
- Subject:
- Economics and Finance, International
The surge of foreign direct investment (FDI) in the late 1980s and first half of the 1990s and the associated expansion of the activities of multinational enterprises (MNEs) has left the world a ...
More
The surge of foreign direct investment (FDI) in the late 1980s and first half of the 1990s and the associated expansion of the activities of multinational enterprises (MNEs) has left the world a somewhat different place than it was as recently as 15 years ago; what has changed is that the ‘globalization’ of business, a term that had become a well‐worn cliché by the early 1990s, has come to look more and more like a description of reality. All of this has resulted in much debate over whether the rules and institutions of the world's multilateral trading system should be augmented to cover more explicitly FDI and the international activities of MNEs. While there is no complete consensus on what the substance of new rules should be, there is a general feeling among specialists that at least three issues should be addressed: first, the extent to which national governments should be allowed to engage in discriminatory treatment towards foreign‐controlled enterprises (including initial entry of these via FDI) needs clarification and, if possible, the establishment of international standards; second is the question of whether there should be limits on the abilities of national governments to create and apply measures to foreign investors that have the potential to distort world allocation of resources; and third, it is widely felt that a more effective international mechanism to resolve disputes between foreign direct investors and governments would be useful. After an introduction that discusses these matters, the next section of the chapter examines the history of efforts to create some sort of international regime regarding FDI and MNEs; the approach of this section is largely historical, but an effort is made to detail some of the specific issues that are raised; the different subsections discuss the WTO (World Trade Organization) and GATT (General Agreement on Tariffs and Trade), the OECD (Organization for Economic Cooperation and Development), the UN (United Nations), the World Bank and the IMF (International Monetary Fund), regional approaches to FDI (the EU (European Union), NAFTA (North American Free Trade Agreement) and APEC (Asian Pacific Economic Cooperation)). The last section of this chapter examines the issue of where we might be going from here.Less
The surge of foreign direct investment (FDI) in the late 1980s and first half of the 1990s and the associated expansion of the activities of multinational enterprises (MNEs) has left the world a somewhat different place than it was as recently as 15 years ago; what has changed is that the ‘globalization’ of business, a term that had become a well‐worn cliché by the early 1990s, has come to look more and more like a description of reality. All of this has resulted in much debate over whether the rules and institutions of the world's multilateral trading system should be augmented to cover more explicitly FDI and the international activities of MNEs. While there is no complete consensus on what the substance of new rules should be, there is a general feeling among specialists that at least three issues should be addressed: first, the extent to which national governments should be allowed to engage in discriminatory treatment towards foreign‐controlled enterprises (including initial entry of these via FDI) needs clarification and, if possible, the establishment of international standards; second is the question of whether there should be limits on the abilities of national governments to create and apply measures to foreign investors that have the potential to distort world allocation of resources; and third, it is widely felt that a more effective international mechanism to resolve disputes between foreign direct investors and governments would be useful. After an introduction that discusses these matters, the next section of the chapter examines the history of efforts to create some sort of international regime regarding FDI and MNEs; the approach of this section is largely historical, but an effort is made to detail some of the specific issues that are raised; the different subsections discuss the WTO (World Trade Organization) and GATT (General Agreement on Tariffs and Trade), the OECD (Organization for Economic Cooperation and Development), the UN (United Nations), the World Bank and the IMF (International Monetary Fund), regional approaches to FDI (the EU (European Union), NAFTA (North American Free Trade Agreement) and APEC (Asian Pacific Economic Cooperation)). The last section of this chapter examines the issue of where we might be going from here.
Alice H. Amsden
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780195139693
- eISBN:
- 9780199832897
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195139690.003.0008
- Subject:
- Economics and Finance, Economic History, International
After floundering for a century, the successful late industrializing countries (the rest) succeeded in creating professionally managed, large‐scale, national firms, although their importance varied ...
More
After floundering for a century, the successful late industrializing countries (the rest) succeeded in creating professionally managed, large‐scale, national firms, although their importance varied by country. The mix of a country's business structures by size and ownership (private or public, foreign or national) influenced the level of its investment in skills. The long‐term strategic ‘make‐or‐buy’ technology choice was a function of firm composition. The process whereby a latecomer succeeds or fails to create a corps of ‘national firm leaders’ is the subject of this chapter. A national leader may be understood as a nationally owned and controlled firm that is ‘targeted’ by government (it receives a disproportionate share of ‘intermediate assets’), which allows it to become a dominant player in its ‘competitive base’ (domestic market), in exchange for which it is obliged to invest heavily in proprietary knowledge‐based assets; these assets, in turn, allow it to globalize through exporting or outward foreign direct investment.Less
After floundering for a century, the successful late industrializing countries (the rest) succeeded in creating professionally managed, large‐scale, national firms, although their importance varied by country. The mix of a country's business structures by size and ownership (private or public, foreign or national) influenced the level of its investment in skills. The long‐term strategic ‘make‐or‐buy’ technology choice was a function of firm composition. The process whereby a latecomer succeeds or fails to create a corps of ‘national firm leaders’ is the subject of this chapter. A national leader may be understood as a nationally owned and controlled firm that is ‘targeted’ by government (it receives a disproportionate share of ‘intermediate assets’), which allows it to become a dominant player in its ‘competitive base’ (domestic market), in exchange for which it is obliged to invest heavily in proprietary knowledge‐based assets; these assets, in turn, allow it to globalize through exporting or outward foreign direct investment.
Steffen Hindelang
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780199572656
- eISBN:
- 9780191705540
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199572656.003.0008
- Subject:
- Law, EU Law
This chapter addresses the exceptions that apply exclusively to third country direct investment, i.e., Article 57 (1) EC, Article 59 EC, and Article 60 EC. Article 57 (1) EC contains a grandfathering ...
More
This chapter addresses the exceptions that apply exclusively to third country direct investment, i.e., Article 57 (1) EC, Article 59 EC, and Article 60 EC. Article 57 (1) EC contains a grandfathering clause for restrictive national and Community laws with respect to the categories of direct investment, including real estate, establishment, the provision of financial services, and admission of securities to capital markets. Concerning Article 57 (2) — empowering the Community to adopt measures involving the categories of capital movement mentioned above — this book limits itself to a broad brush depiction of the provision. Article 59 EC allows the Community to take temporary safeguard measures with regard to third countries in case of economic crisis. Article 60 EC provides the EC, and on an interim basis also the Member States, in the framework of the Common Foreign and Security Policy (CFSP), with a tool to adopt economic sanctions against one or more third countries in the area of free movement of capital. The discussion of the above-mentioned exceptions centres upon their effects on the standard of liberalisation of foreign direct investment achieved by virtue of Article 56 (1) EC.Less
This chapter addresses the exceptions that apply exclusively to third country direct investment, i.e., Article 57 (1) EC, Article 59 EC, and Article 60 EC. Article 57 (1) EC contains a grandfathering clause for restrictive national and Community laws with respect to the categories of direct investment, including real estate, establishment, the provision of financial services, and admission of securities to capital markets. Concerning Article 57 (2) — empowering the Community to adopt measures involving the categories of capital movement mentioned above — this book limits itself to a broad brush depiction of the provision. Article 59 EC allows the Community to take temporary safeguard measures with regard to third countries in case of economic crisis. Article 60 EC provides the EC, and on an interim basis also the Member States, in the framework of the Common Foreign and Security Policy (CFSP), with a tool to adopt economic sanctions against one or more third countries in the area of free movement of capital. The discussion of the above-mentioned exceptions centres upon their effects on the standard of liberalisation of foreign direct investment achieved by virtue of Article 56 (1) EC.
