Case Of Foreign Direct Investment Research Articles

Africa-China Relations: A Case of Foreign Direct Investment and the Democratic Republic of Congo’s Mining Sector

Abstract Since independence, Foreign Direct Investment has been central to African Development and economic expansion. Herein, this paper traces the role and impact of the FDI in the mining sector of DRC. The analysis is based on the institutional FDI fitness theory coined by Saskia Wilhelm in 1998, which suggests that states with good governance, strong state institutions, and stable political capacity attract the most FDI in emerging economies. However, China’s mining investment in the DRC has refuted Wilhelm’s theory. As such, this research will analyze the role and impact of FDI in the mining sector of the DRC, with a focus on China’s mining investment and its impact on the country’s economic development. The institutional FDI fitness theory will serve as the conceptual framework for the research. Data collection will involve a thorough literature review and analysis of secondary data sources, such as academic journals, reports, and government documents. Furthermore, the mining profile, type of investment, and investment achievements will be assessed to provide a comprehensive understanding of the topic. The data will be analyzed using content and thematic analysis to identify patterns and themes that emerge from the data. Overall, a qualitative case study approach will be appropriate for this research as it will allow for an in-depth analysis of the role and impact of FDI in the mining sector of the DRC. It will also provide insights into the complexities of the relationship between FDI, governance, and economic Development in Africa. One significant finding has conceded that government fitness does not necessarily attract investment. Instead, a weak state capacity and domestic policy create easy access to investment that does not align with the host country’s development. This finding has affirmed the argument that African countries should engage in trade rather than aid since aid has kept African economies in a circle of dependency.

MFN Yes, MFN No?

This research analyzes the consequences of the likely revocation of the principle of the most-favored-nation (MFN) in trade relations between the European Union (EU) and Russia. The analysis shows that this event would have more negative effects on Russia than the EU. The increase in import tariffs would benefit the EU with increase in profits but would lead to an increase in the cost of products for buyers in the short term, pushing them into new, more advantageous markets. Although Russia is trying to replace EU products with Asian ones, and gaining success too, the case of foreign direct investment (FDI) is different, as the country is still heavily dependent on EU.

Managing Brand Image With Facebook Advertising Content: A Case of Foreign Direct Investment in the United States

Managing Brand Image With Facebook Advertising Content: A Case of Foreign Direct Investment in the United States

Financial globalization and institutions in Africa: the case of foreign direct investment, central bank independence and political institutions

AbstractIn this paper, we examine the bi-directional relationship between financial globalization (proxied by foreign direct investment (FDI) flows) and economic institutions (proxied by central bank independence (CBI)) taking into consideration the role of political institutions. We test our argument on a sample of 48 African countries (1970–2012) using a two-step System Generalized Methods of Moments, with collapsed instruments and Windmeijer robust standard errors. Using two proxies for CBI, the study finds that while legal CBI does not have a significant impact on FDI, high central bank governor turnover rates have a significantly negative impact on FDI inflows. However, higher levels of political institutions significantly enhance the impact of legal CBI on FDI inflows, and dampen the impact of high central bank governor turnover rates on FDI inflows. The study also shows that, higher FDI inflows have a significantly positive impact on both legal andde factoCBI. This impact is accelerated in countries characterized by higher levels of political institutions.

Evidence for Gross Domestic Product growth time delay dependence over Foreign Direct Investment. A time-lag dependent correlation study

This paper considers an often forgotten relationship, the time delay between a cause and its effect in economies and finance. We treat the case of Foreign Direct Investment (FDI) and economic growth, - measured through a country Gross Domestic Product (GDP). The pertinent data refers to 43 countries, over 1970–2015, - for a total of 4278 observations. When countries are grouped according to the Inequality-Adjusted Human Development Index (IHDI), it is found that a time lag dependence effect exists in FDI–GDP correlations. This is established through a time-dependent Pearson ’s product-moment correlation coefficient matrix. Moreover, such a Pearson correlation coefficient is observed to evolve from positive to negative values depending on the IHDI, from low to high. It is “politically and policy relevant” that the correlation is statistically significant providing the time lag is less than 3 years. A “rank-size” law is demonstrated. It is recommended to reconsider such a time lag effect when discussing previous analyses whence conclusions on international business, and thereafter on forecasting.

Korea’s Foreign Direct Investment in the Automotive Industry in China

This article examines the impact of foreign-invested enterprises in the development of China’s automotive industry. It particularly focuses on the case of foreign direct investment (FDI) by a Korean firm, namely, the Hyundai Motor Company, in China. The Chinese government’s policy regarding the automotive industry allowed China’s domestic manufacturers to benefit from technology transfer, as foreign firms were not allowed to invest exclusively in China without a partnership. The contribution of Korea’s investment in China’s automotive industry would comprise the creation of job opportunities, technology transfer and the development of the automobile parts industry. Korea’s investment in the automotive industry of China has policy implications for China and other developing countries trying to expand their technology-intensive industries.

How EU Integration and Legacies Mattered for Foreign Direct Investment into Central and Eastern Europe

This essay uses the case of foreign direct investment (FDI) in Central and Eastern Europe to stipulate how European Union (EU) integration affected the economic globalisation of the post-socialist region. Existing studies argue that expectations of impending EU membership had a direct effect on raising FDI inflows because they reduced perceived investment risks for potential investors. In contrast, I show that the EU accession process worked through an indirect effect on FDI: it influenced post-socialist states' efforts to promote FDI as a desirable strategy of economic development and the behaviour of firms. These state efforts, in turn, increased FDI inflows, net of conventional risk and return factors. Further analyses indicate that decisions about state FDI-promotion have been influenced not only by EU conditionality but also, and importantly, by particular legacies, namely the countries' initial choice of privatisation strategies, extent of reform during socialism and history of state sovereignty. Overall, the results suggest that EU integration and legacies of the past shape both the structural and the ideational context for domestic decision-making elites in Central and Eastern Europe, and may act not only as constraints but also as enabling conditions facilitating the global economic integration of the region.

Firm resource and first mover advantages: A case of foreign direct investment (FDI) in China

This paper examines the relationship between firm resources and first-mover advantages with regard to foreign direct investment (FDI) in China. While this study replicates some previous research on the issue, it also builds on the previous research by developing new theoretical arguments and adopting different research methods. Based on research on the resource-based view of the firm, we hypothesize that firm resources will moderate the relationship between the timing of entry and firm performance. Empirical analyses of data from a sample of MNEs competing in China show evidence supporting our hypotheses.

Technological capabilities and international production strategy of firms: the case of foreign direct investment in China

In this paper, the author highlights the differing motives behind direct foreign investment (FDI) made by (1) large transnational corporations (TNCs) from industrial countries, and (2) small manufacturing firms from newly industrializing economies (NIEs). The basic premise is that TNCs that command sophisticated technologies wish to produce in China to exploit their technological advantages by gaining access to potentially substantial Chinese domestic markets. However, small firms from NIEs such as Hong Kong use more mundane technologies. They are more interested in using low cost inputs, such as labor and land in China, so that they can continue to export manufactured goods to third countries, thus avoiding rising input costs in their own domestic economies. The discussion is supported by the results of a survey and interviews with executives from both large TNCs and small NIE firms active in PRC.

Potentials for East — West Integration: The Case of Foreign Direct Investment

Reshaping the relationships between Western Europe and the former communist bloc is one of the most intriguing challenges for the coming years. Will Central and Eastern Europe become passive players in the European and world economy, or will companies located there become integrated as fully fledged partners? Foreign direct investment (FDI) is heavily concentrated in a few countries in Central and Eastern Europe. It is argued that the type of FDI is more important than the amount of FDI. There is a need for a critical assessment of the strategies of the investors and the impacts on local entrepreneurship. In this vein, the authors describe various interesting future research paths and make policy recommendations.

International technology transfer examined at technology component level: a case study in China

This paper develops the concept of a ‘technology ball’ and applies this to the case of foreign direct investment (FDI)-based technology transfer in Dalian City, Northeast China. The results indicate that current technology transfer is dominated by hardware transplantation, while the technology associated with innovation skills is rarely transferred. Because the technology value of FDI is low, the technology ball itself is small and important policy changes are necessary in order to facilitate movement in the ball, that is to stimulate technology transfer through FDI.