Direct Manufacturing Investment Research Articles

Measuring Efficiency and Spillover Effects of Foreign Direct Investment in Manufacturing: An Indian Policy Perspective

Measuring Efficiency and Spillover Effects of Foreign Direct Investment in Manufacturing: An Indian Policy Perspective

Low-Skill Products by High-Skill Workers: The Distributive Effects of Trade in Emerging and Developing Countries

In developing countries, trade is increasingly associated with greater returns to high-skilled labor and rising inequality. These empirical patterns are at odds with canonical models of trade in the developing world. What does this mean for the political economy of trade in these countries? We argue that although developing countries have a comparative advantage in low-skill products, these are produced by workers that are relatively high-skilled compared to their peers. Trade and global production benefit relatively skilled workers, particularly those exposed to exports and inward foreign direct investment in manufacturing. Our argument offers insight into why relatively skilled workers are most supportive of free trade and why inequality is rising in developing countries. We examine micro- and macro-level implications of our argument using cross-national survey data on policy preferences and aggregate data on trade and inequality. The findings have important implications for the political economy of trade and global production in developing countries.

The legacy of colonial rule: On the impact of the railway zones in modern China

AbstractThis paper examines the long‐ and short‐run impacts of the railway zones associated with the China Eastern and South Manchuria Railways in Manchuria, which were administered by Russia and Japan, respectively, from the early 1900s to the 1920s. Despite the fact that ‘railway imperialism’ impaired China's sovereignty and territorial integrity and constituted a humiliating quasi‐colonial episode in Chinese history, railway zones nevertheless had a noticeable impact on Manchuria's local economies. Through a reconstruction of the historical dataset and cliometrics, we show that, among the railway zones in northeastern China, only those attached to the South Manchuria Railway exerted a significant and positive impact. Specifically, its railway zone had higher urbanisation and literacy rates and a higher percentage of professionals in its industrial and commercial sectors in the 1930s, and these effects persist to the present day as an unintended outcome. Apart from the agglomeration of direct manufacturing investment in these railway zones, an additional channel through which the impact took effect was the provision of public goods, such as schools and hospitals, which served as necessary conditions for long‐term development. This study sheds light on understanding the persistence of colonial history as a root of development.

Politicising embedded neoliberalism: continuity and change in Hungary’s development model

Focusing on the critical Hungarian case, this article analyses the fate of embedded neoliberal capitalism in the wake of the global financial crisis. The changes include policies to combat foreign dominance in the financial, energy, and retail sectors, and efforts to reform and retrench the hitherto relatively generous welfare state. Nevertheless, the article finds no less evidence of continuity than of change: the politicisation of fighting dependency is combined with the quiet politics of subsidising foreign direct investment in manufacturing, and the noisy politics of protecting pensioners and middle-class families parallels the erosion of future-oriented social investment. Notwithstanding the radical turn in development rhetoric, the actual path correction has merely shifted the pattern of dependency without breaking out of it: financing socio-economic development in Hungary (as in other Visegrád states) is still largely dependent on foreign sources, albeit of a more diversified nature, including not only manufacturing FDI, but the EU’s structural funds and migrant labour’s remittances as well.

A flying goose chase: China’s overseas direct investment in manufacturing (2011–2013)

ABSTRACTThis paper examines whether rising wages have driven Chinese manufacturers to make foreign direct investment abroad to reduce the costs of production. We match the Chinese Ministry of Commerce’s register of Overseas Direct Investments with China’s Industrial Enterprise Survey data from 2011 to 2013 and annual average wage data for prefecture-level cities. Although high-income developed economies are the preferred destinations for Chinese manufacturing investment abroad, labor-intensive light manufacturing sectors related to the textiles, clothing and leather industries are focused on the low-income countries – consistent with a ‘flying goose’ effect. But, these are only a small part of the Chinese investment – account for 6% of the number of matched official ODI registrations. Yet, it might be still too early to observe that rising factor prices are systematically driving investments offshore.

Regional Foreign Direct Investment in Manufacturing. Do Agglomeration Economies Matter?

Pelegrín A. and Bolancé C. Regional foreign direct investment in manufacturing. Do agglomeration economies matter?, Regional Studies. This paper examines the role played by agglomeration economies as location determinants of regional foreign direct investment (FDI) in manufacturing. The analysis reveals that FDI location is dependent on specific industry traits and that agglomeration economies appear as the strongest pull factors. The model, estimated with panel data, finds evidence, first, that industries with a high level of linkages are attracted to regions with high manufacturing activity, and, second, that locations which accumulate research and development (R&D) activities attract chemical industries. Finally, cost-oriented industries do not value agglomeration economies and their localization emerges as a result of endowment reasons. Pelegrín A. et Bolancé C. L'investissement direct étranger régional dans l'industrie – Les économies d'agglomération, ont-elles de l'importance? Regional Studies. Cet article cherche à examiner le rôle que jouent les économies d'agglomération dans la détermination de la localisation de l'investissement direct étranger régional industrielle. L'analyse laisse voir que la localisation de l'investissement direct étranger dépend des caractéristiques particulières de l'industrie et que les économies d'agglomération s'avèrent les forces motrices les plus puissantes. Estimé à partir des données provenant d'une enquête à échantillon constant, le modèle indique, primo, que les industries qui jouissent d'importantes liaisons se dirigent vers les régions dont l'activité industrielle est forte et, secundo, que les industries chimiques s'installent dans les zones où s'agglomèrent les activités de R et D. Pour conclure, les industries qui mettent l'accent sur les coûts n'évaluent pas les économies d'agglomération, et leur localisation s'explique par des caractéristiques particulières. Investissement direct étranger Economies d'agglomération Localisation de l'industrie régionale Caractéristiques industrielles Données par enquête à échantillon constant Pelegrín A. und Bolancé C. Regionale ausländische Direktinvestitionen in produzierende Betriebe: Spielen Agglomerationswirtschaften eine Rolle? Regional Studies. In diesem Beitrag wird untersucht, welche Rolle Agglomerationswirtschaften als Standortdeterminanten für regionale ausländische Direktinvestitionen in produzierende Betriebe spielen. Aus der Analyse geht hervor, dass der Standort für ausländische Direktinvestitionen von spezifischen Branchenmerkmalen abhängt und dass von Agglomerationswirtschaften die stärkste Anziehungskraft auszugehen scheint. Aus diesem Modell, das auf Schätzungen anhand von Paneldaten beruht, gehen Belege hervor, dass erstens hochgradig verknüpfte Branchen von Regionen mit ausgeprägter Produktionstätigkeit angezogen werden, und dass zweitens Standorte, in denen sich F&E-Aktivitäten konzentrieren, Chemiebetriebe anziehen. Kostenorientierte Branchen schließlich legen keinen Wert auf Agglomerationswirtschaften; hier richtet sich die Standortwahl nach Aspekten der Ausstattung. Ausländische Direktinvestitionen Agglomerationswirtschaften Regionale Produktionsstandorte Branchenmerkmale Paneldaten Pelegrín A. y Bolancé C. Inversión directa extranjera regional en manufacturación ¿Importan las economías de aglomeración? Regional Studies. En este artículo examinamos el rol desempeñado por las economías de aglomeración como determinantes de ubicación de la inversión directa extranjera regional en manufacturación. El análisis indica que la ubicación de la inversión directa extranjera depende de particularidades específicas en la industria y que las economías de aglomeración aparecen como los factores más sólidos de atracción. Con el modelo, según una estimación de datos de panel, se demuestra primero que las industrias con un alto nivel de vínculos se ven atraídos por regiones con una alta actividad de manufacturación y segundo, que las ubicaciones en las que se acumulan las actividades de I + D atraen a las industrias químicas. Finalmente, las industrias basadas en el coste no valoran las economías de aglomeración y su ubicación depende de la dotación de la región. Inversión directa extranjera Economías de aglomeración Ubicación de manufacturación regional Particularidades de la industria Datos de panel

Direct Foreign Manufacturing Investment Decisions for China

A firm's foreign direct manufacturing investment (FDMI) vehicle choice is a difficult one. Scholars and practitioners alike differ over the best vehicle of entry into foreign markets. The traditional wisdom suggests the formation of an equity joint venture, a choice that reflects the advice offered by the ancient Chinese proverb, “It is a fool who does not hire a guide when entering a foreign land.” Recently, a wave of agreement has washed over scholars and practitioners, who are now promoting the wholly owned foreign subsidiary as the preferred vehicle for entering foreign markets. This article examines 74 FDMI decisions made by manufacturing firms entering the People's Republic of China. Examination of these data suggests a revised FDMI decision framework based on an individual firm's technology, investment size, market scope, new-product development strategy, and government regulation.

Foreign Investment in the Nonmetropolitan U.S. South and Midwest: A Case of Mimetic Location Behavior?

This study asks a basic question about foreign direct manufacturing investment (FDI) in the United States: are its location patterns really "foreign"? This question is motivated by the observation that rather than changing the geography of U.S. manufacturing, foreign manufacturers appear to be mimicking the location patterns of their domestically owned counterparts. A conditional logit procedure is used to analyze the reasons why foreign manufacturers have been attracted to nonmetropolitan counties of the South and Midwest. This analysis supports the case for a mimetic explanation of their location decisions.

The impact of national and parent company origin on world‐class manufacturing

Presents the results of a study examining differences in world‐class manufacturing practices and performance between the UK and Germany, based on a sample of more than 500 German and British manufacturing plants. Suggests that although German superiority persists in many areas, it may not be as great as generally assumed. While at the overall level, country‐of‐origin effects are important, many of the plant sites sampled were part of multinational organizations. Also examines how much of the difference in manufacturing practices and performance at the site level might be attributed to foreign direct investment in manufacturing. Concludes that parent origin does have a significant effect at the site level.

U.S. Multinationals in British Manufacturing before 1962

This article presents a new database on U.S. multinationals active in British manufacturing between 1907 and 1962. Britain was the largest European host economy for U.S. direct investment in manufacturing and the second largest host worldwide. This article identifies the industrial distribution and mode of entry of U.S. investors, and offers explanations for the time trends which are shown. It goes on to trace the evolution of U.S. subsidiaries, and shows that rates of divestment were substantial. An examination of the characteristics of U.S. subsidiaries, including the substantial investments in R & D and high export propensity, is followed by a survey of British public policy, which made Britain an attractive host but did little to shape the form of U.S. investment.

Factories or Warehouses? A Welsh Perspective on Japanese Transplant Manufacturing

MUNDAY M., MORRIS J. and WILKINSON B. (1995) Factories or warehouses? A Welsh perspective on Japanese transplant manufacturing, Reg. Studies 29, 1–17. Critics of Japanese direct manufacturing investment have argued that the Japanese transplant manufacturing sector (TMS) represents an attempt to circumvent trade barriers rather than a genuine globalization of Japanese capital, and that host regions will find themselves with warehouses or low value-added final assembly plants rather than fully integrated manufacturing operations which will contribute significantly to the development of the local economy. This paper presents a detailed study of the economic impact of Japanese manufacturing in Wales, a region within the UK which has one of the highest concentrations of Japanese manufacturing investment in Europe. It finds that there are some problems with Japanese investment, but although Japanese companies do appear to operate their businesses in different ways to other inward investors, many of these are be...

Comments on “Japan's Direct Manufacturing Investment”

(1990). Comments on “Japan's Direct Manufacturing Investment”. The Professional Geographer: Vol. 42, No. 2, pp. 223-226.

The Chartered Banks and Foreign Direct Investment in Canada

Canadian industrial development in the twentieth century, has been spearheaded by foreign (largely American) direct investment in manufacturing and resource exploitation. Up to 1970, that process met with little resistance.

Hong Kong

Hong Kong has been exporting technology to other developing countries through its foreign direct investment in manufacturing. Although Hong Kong does not have a large capital goods sector, it does produce certain modern machinery for plastics production. In addition, Hong Kong manufacturing firms act as an intermediary in the two-stage transfer of technology from developed to developing countries in the process of which adaptations are often made. More importantly, product designs which are the great strength of many Hong Kong manufacturers are often passed on to the host countries via foreign direct investment and the subsequent diffusion processes. Lastly, Hong Kong manufacturers also export ‘software’ technology such as management techniques, marketing connections and labour skills to the developing host countries.

Foreign direct investment in European manufacturing industry: the changing position of the United Kingdom as a host country

The position of the United Kingdom as a host country for foreign direct investment in manufacturing is examined in the European context. Several trends are identified which suggest that the United Kingdom's relative position is changing. In particular, the balance of United States manufacturing investment has been shifting away from the United Kingdom and towards mainland Europe while the United Kingdom's membership of the EEC enables European countries to serve the United Kingdom market by exporting rather than by direct investment. As yet, the volume of Japanese investment in United Kingdom and European manufacturing is small. In the competition between nations for internationally mobile investment. Ireland has captured a good deal of new manufacturing investment, some of which may have been ‘diverted’ from the United Kingdom. The apparent decline in the attractiveness of the United Kingdom as a host country for foreign manufacturing investment could have serious consequences for employment in the peripheral regions of the United Kingdom particularly in the light of developments in the organization of multinational enterprise and the impending enlargement of the EEC.

Foreign direct investment in manufacturing. Edward John Ray, Assistant Professor, Ohio State University. Abstract from Journal of Political Economy, April 1977, p. 283

The International ExecutiveVolume 19, Issue 3 p. 23-24 Articles in Brief Foreign direct investment in manufacturing. Edward John Ray, Assistant Professor, Ohio State University. Abstract from Journal of Political Economy, April 1977, p. 283 First published: Autumn (Fall) 1977 https://doi.org/10.1002/tie.5060190314AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat No abstract is available for this article. Volume19, Issue3Autumn (Fall) 1977Pages 23-24 RelatedInformation

Foreign Direct Investment in Manufacturing

The purpose of this paper is to present a simple model, based on profit-maximizing behavior, that can be used to derive estimable equations for U.S. foreign direct investment in manufacturing. Our estimation of foreign-investment equations requires estimates of production functions for U.S. manufacturing subsidiaries abroad. Specifically, I estimate the production function to be a constant-returns-to-scale, homogeneous, transcendental logarithmic function. I also present evidence in the form of my estimated foreign-direct-investment equation that domestic and foreign markets may be imperfectly competitive.

The Environmental Determinants of Foreign Direct Manufacturing Investment: An Ex Post Empirical Analysis

This article uses the techniques of quantitative cross-national research to explore the relationship between foreign direct investment (FDI) and the economic, social, and political aspects of the environment. Although a strong relationship is found between flows of FDI and market related variables, no relationship can be established between FDI and variables based upon political event data. The findings are consistent with a view of political discontinuities as necessary but not sufficient conditions for business risk.

Recent foreign direct manufacturing investment in the United States

The study of direct investment movements has become increasingly important in recent years due to the impact that these movements have on development, balance of payments, and domestic control of the domestic economy. From 1954 through 1967, the value of foreign direct investment in the United States grew from d4.6 billion to d9.9 billion. Concomitant with this growth has been an increase in interest in the United States to attract foreign investment. At the national level the interest has evolved because of balance of payments problems; whereas, at the state and local level, interest is due to industrial development objectives.© 1970 JIBS. Journal of International Business Studies (1970) 1, 125–132

Recent Foreign Direct Manufacturing Investment in the United States

Recent Foreign Direct Manufacturing Investment in the United States