Distribution Of Foreign Investment Research Articles

Who wins the race for knowledge-based competitiveness? Comparing European and North American FDI patterns

The geographical dispersion of value-added activities triggered by the ‘great unbundling’ of production has made the race for competitiveness increasingly shaped by the capability of multinational corporations (MNCs) to orchestrate global innovation networks at world scale. However, major differences in the distribution of foreign investments across value chain functions undertaken by MNCs based in different economic areas have drawn little attention in the empirical literature. This work attempts to fill this gap by focusing on the FDI patterns of European and North American MNCs, which have historically played a key role in the internationalization of production and innovation. To this aim, we compare outward FDI flows of European and North American MNCs in manufacturing and knowledge-intensive activities over the period 2003–2017. We show that while European MNCs are key players in global networks of production, they do not reach the heights of North American investors in the dispersion of knowledge-based activities. Most importantly, European MNCs rely on emerging economies more to offshore production than to set up R&D labs in these countries; by contrast, US-based MNCs are more prone to engage in knowledge-intensive FDIs towards the most dynamic emerging countries (especially China and India, as well as the Four Asian Tigers). Further, we account for the growing role of new entrants in global FDI markets by comparing the advanced economies’ foreign investment decisions with those from Chinese MNCs. Drawing from the literature on the globalization of R&D and cross-border knowledge transmission, a discussion is finally offered on the potential implications of the detected differences in internationalization patterns, together with possible directions for future research.

ОСОБЕННОСТИ ИНОСТРАННЫХ ИНВЕСТИЦИЙ В СФЕРЕ УСЛУГ В РОССИЙСКОЙ ФЕДЕРАЦИИ

Attracting foreign investment to the Russian service sector in 2021 is not an easy task. It is neces-sary to take into account the peculiarities of the structure and dynamics of the distribution of foreign investment within the tertiary sector. The Russian Federation is lagging behind in attracting investment in industries such as business services, computers, telecommunications and human capital. The state must determine the necessary balance between the liberalization of the service sector and the density of protectionism in the same area. The legislation in force should be taken into account and compared with the practice of neighboring countries.

The development of digital modeling in the theory of regional economics based on data on industrial petrochemical types of activity

According to the production activities of the Republic of Tatarstan, the importance of the petrochemical and chemical cluster in the sustainability of the regional economy is considered. The expediency of digital modeling based on the simplex method in the theory of regional economics as the development of the W. Aizard spatial analysis school is introduced. a certain group of close industrial, commercial or other ties. The article shows a new economic and mathematical approach to comparing exports of plastics and their products, synthetic rubber and tires on the one hand, and imports of plastics and products from them, essential oils, perfumery, cosmetics and organic compounds on the other. On the basis of the same economic-mathematical method, a digital model of communication of the above-mentioned types of industrial activity is presented with the distribution of foreign investment by petrochemical and chemical types of eco-nomic activity of the Republic of Tatarstan. On her example, a proposal was developed on the possibility of forming a conclusion about the sustainability of a regional economic system with a high value of petrochemical cluster. Digital modeling is currently developing very productively. This is due to the high development of software, which is being formed in the form of software packages. The use of such packages improves simulation performance and at the same time simplifies it. The advantages of digital modeling methods are the ability to solve any class of problems amenable to mathematical formalization, ensure high accuracy of computational work, ease of transforming one task into another (as a rule, just restart the program) and study objects of high dimensionality.

Industrial clusters, entrepreneurial culture and the social environment: The effects on FDI distribution

Abstract Using balance sheet data from a sample of 3498 foreign firms in the manufacturing industry we analyse the distribution of foreign direct investments (FDI) in Italy at a very detailed geographical level, i.e. the provincial level, a region which comprises an urban area and the limited geographical area surrounding it. In this paper, we test the impact that agglomeration economies, entrepreneurial culture and social capital have on the distribution of foreign investments. While the findings regarding the social variables are mixed, the important role played by agglomeration economies is confirmed. Our analysis shows that investments by multinationals are attracted by those areas that combine industrial cluster characteristics with an agglomeration of foreign firms and that have a high level of entrepreneurial culture. The role that this last variable plays is fundamental and suggests the idea that multinational corporations (MNCs) invest in regions with entrepreneurial resources.

Direct Foreign Investment in Nigeria: An Empirical Analysis

Although the presence of foreign capital has been quite evident in most sectors of the Nigerian economy, only a handful of studies have attempted to analyze some aspects of direct foreign investment in the country. Even then, these studies (Hakam, 1966; May, 1965; Edozien, 1968; Langley, 1968; Central Bank of Nigeria, 1964-79) have tended to be descriptive, especially with respect to analyzing trends, incentives, motivations, linkage aspects, and distribution of foreign investment. Thus, there has been virtually no empirical work aimed at statistically evaluating the determinants of direct foreign investment in Nigeria. Consequently, this study has the object of going beyond intuitive and descriptive analysis by providing a comprehensive empirical estimate of determinants of direct foreign investment, using the least squares regression approach. In order to provide the theoretical framework, a number of direct investment hypotheses proposed or considered in the literature are first reviewed. The analysis focuses on direct foreign investment in all industries combined. Apart from possible specification problems connected with separate models for different industries which a disaggregated approach entails, such an attempt is further complicated by the absence or the poor quality of data relating to the larger number of variables which would have to be considered. Taking cognizance of this kind of problem in a developing country such as Nigeria, the only disaggregation to be done is in respect to sources of foreign investment. In this direction, the study analyzes total direct investment as well as direct foreign investment from the United Kingdom and the United States of America. These two countries accounted for over 62 percent of direct foreign investment in Nigeria in 1974.