Business Commons^™

Value Beyond Borders: Moderating Effects Of Global Owners On The Negative Relationship Between Fdi And Sanctions Intensity, Maeve Walsh

WWU Honors College Senior Projects

This research explores, with a large dataset, how global owners moderate the negative relationship between foreign direct investment and sanctions intensity. To explore the impact different factors have on subsidiaries, the top ten Japanese pharmaceutical companies’ data was collected over five years. This research describes the methods utilized to collect the data from the Japanese pharmaceutical companies, followed by the statistical regression used to analyze the outcomes. Finally, the data explores international business implications from the analysis.

The Provenances And Postscripts Of 1989, Jokubas Salyga

Political Science Faculty Publications and Presentations

The books under review exemplify some of the finest recent work on the historically informed political economy of Central and Eastern Europe. While different in their conceptual frameworks and geographical foci, the titles converge in the advancement of nuanced and convincing arguments, displaying both theoretical acuity and empirical depth to great effect. Bartel, Fabry, and Pula all share a resolute dedication to illuminating the under-explored provenances of neoliberalism and/or globalization in the region, that predate the annus mirabilis of 1989. Their contributions situate the ‘Eastern bloc’ states within the contours of evolving global political economy and the existential crises engulfing …

Boots On The Ground: Foreign Direct Investment By Born Digital Firms, Maximilian Stalkkamp, Liang Chen, Sali Li

Research Collection Lee Kong Chian School Of Business

Research Summary: Recent global strategy research on born digital firms (i.e., firms with digital products distributed through digital channels) has paid only limited attention to the role of foreign direct investment (FDI) in the internationalization of such firms. We argue that exploiting digital technologies requires a range of complementary, non-digital resources. Born digitals typically deploy FDI when large cultural and geographic distances limit the fungibility and scalability of such complementary resources, leading to a positive relationship between distance (cultural and geographic) and FDI. The positive distance effect is moderated by business model type. Using a sample of US-based born digital …

Primitive Accumulation And Multinational Corporations: The Evolution Of Dispossession And Exploitation In The Rubber Industry, Matthew Rochat

The Journal of International Relations, Peace Studies, and Development

I examine how the process of primitive accumulation has led to evolving forms of dispossession and exploitation carried out by multinational corporations in the rubber industry. After a brief review of relevant literature, I outline a novel analytical approach to multinational corporations engaged in natural resource extraction, referred to as the Parasitic Extraction Model. I then demonstrate this approach using three case studies. The first, Leopold II’s Congo, showcases the barbaric underpinnings of primitive accumulation in the rubber industry in its crudest form. The subsequent section shifts to the interwar period with Fordlândia in the Brazilian Amazon where I analyze …

Subsidiary Staffing, Location Choice, And Shareholder Rights Effectiveness, Nathaniel C. Lupton, Vishaal Baulkaran, Yeonji No

Faculty Research, Scholarly, and Creative Activity

Institutional differences between countries influence strategic choices and performance of international businesses, but the unintended effects of legal institutions on firm legitimacy have received less attention. We argue that, while minority shareholder rights protection in an investment location does not directly protect shareholder interests abroad, the normative and mimetic effects it has on host country managers can mitigate agency problems. Using Japanese FDI established between 1986 and 2013 we find that (a) subsidiaries established in host countries with higher shareholder rights protection employ a smaller proportion of Japanese expatriates, (b) shareholder rights protection enhances a country’s FDI attractiveness, and (c) …

Urban Utopia Or Pipe Dream? Examining Chinese-Invested Smart City Development In Southeast Asia, Yujia He, Angela Tritto

Patterson School of Diplomacy and International Commerce Faculty Publications

With increasing public–private partnership and international cooperation in smart city development across the Global South, Chinese firms are poised to take advantage of growing business opportunities, a situation that few studies have examined. This empirical case study of the Forest City, a Chinese-invested greenfield smart city project in Iskandar Malaysia, begins to fill that gap. This megaproject represents the coming together of overlapping economic development interests of the local authorities and the profit motivations of the Chinese investor. However, the project’s use of the ‘smart city’ discourse contrasts with the reality of limited technology adoption. Its visibility and considerable socio-economic …

Blue Economy And Collaborative Strategies: A Critique Of Multi-National Enterprises, Josephine Mabuti Nthia

Journal of Global Business Insights

The concept of blue economy has been advanced by many countries as a new economic frontier aimed at development and utilization of blue ocean resources. To effectively develop a blue economy, capital intensive infrastructure, human and intellectual resources are required although they have been found to vary between countries or regions due economic or natural endowments. A theoretical analysis of relevant theories including: Foreign Direct Investment and eclectic model, Transaction Cost, and Stakeholder theories was undertaken. Further, a critical conceptual analysis covering fifty-five articles on blue economy and collaborative strategies with multinational enterprises (MNEs) was conducted to in an attempt …

Comportamiento De La Inversión Extranjera Directa, Frente Al Pib Minero: En El Periodo De 2002-2018, Yeimy Dayana Espitia Martínez, Carmen Elisa González Quiroga, Malory Dayana Lemos Bedoya

Negocios y Relaciones Internacionales

El sector minero en Colombia, es de gran importancia para el desarrollo económico, ya que cuenta con excelentes perspectivas para el crecimiento sostenido del país a largo plazo, esto dado que el territorio nacional presenta gran abundancia de recursos naturales, y una buena ubicación geográfica. Estas características inicialmente atraen inversión extranjera directa, la cual necesita condiciones que son primordiales para desarrollar un proyecto minero en nuestro país. Dado esto el siguiente documento pretende explicar la correlación entre la inversión extranjera directa (IED) y variables como: PIB nacional, el PIB minero, las tasas de cambio, aspectos políticos como; los esquemas de …

Foreign Direct Investment In Global Cities And Co-Ethnic Clusters: Characteristics, Performance, And Survival, Dwarka Chakravarty

Electronic Thesis and Dissertation Repository

This dissertation examines the characteristics, profitability, and survival of multinational enterprise (MNE) foreign direct investment (FDI) in North American “global” cities (GCs), such as Los Angeles, New York, and Toronto. Across GCs and their metropolitan areas (Metros), MNEs often co-locate with their home country and co-industry peers in “co-ethnic” and “co-ethnic, co-industry” (CECI) clusters. Despite their substantial influence on the world economy GCs are relatively underexplored as location units of analysis in International Business (IB) research. Accordingly, I address three research questions. First, how do subsidiary and MNE characteristics differ between GCs, Metros, and other locations? Second, how does subsidiary …

Contemporary Perspectives On The Internationalization Of Firms, Maximilian Stallkamp

Electronic Thesis and Dissertation Repository

This dissertation contributes new insights to research on the internationalization of firms. Whereas prior research has focused mostly on the country as the main locational unit of analysis, I examine internationalization from both subnational and (supranational) regional perspectives. Moreover, I investigate the impact of digitalization on internationalization, by studying how ‘digital’ firms expand internationally.

Essay 1 examines how the initial subnational location choices of multinational enterprises (MNEs) in a host country (China) affect their subsequent investments in the same country. I argue that subnational locations with dense agglomerations of MNEs from the same home country can provide firms with co-ethnic …

Examining The Relationship Between Environmental Regulations And Foreign Direct Investment Level: Evidence From China, Hadia Fakhreldin, Yomna Elsawy

Business Administration

This study examines the relationship between the environmental regulations and the FDI levels in China. The environmental regulation stringency is measured using emissions and other energy consumption data. The study is based on the pollution haven hypothesis and additionally applies direction of causality tests. The main objectives of the study are: to measure the environmental regulatory stringency and to identify the relationship between the application of the environmental restrictions and the level of FDI in China in the period from 1979–2013. The study adopts a quantitative approach; a correlation matrix, a multiple regression model, and granger causality are used first; …

Do Credit Ratings Matter? An Examination Of The Relationship Between Sovereign Ratings And Capital Flows Pre And Post Financial Crisis, Greg Violante

Economics Department Student Scholarship

This paper examines the relationship between sovereign credit ratings and international capital flows to emerging market economies (EMEs). More specifically, it analyzes how ratings impact capital flows (FDI and portfolio investment) before and after the 2007-2008 financial crisis. This study breaks the data into two samples, pre-crisis (1995-2006), and the post crisis (2007-2015). After using a System GMM method for 20 EMEs, the paper compares the pre- and post- financial crisis credit rating coefficients. The results indicate that the ratings have become more impactful overtime, for both FDI and portfolio investment, although the coefficients are not statistically different. Interestingly however, …

Benefits Of Foreign Ownership: Evidence From Foreign Direct Investment In China, Xiao Wang, Jian Wang

Economics & Finance Faculty Publications

To examine the effect of foreign direct investment, this paper compares the post-acquisition performance changes of foreign- and domestic-acquired firms in China. Unlike previous studies, we investigate the purified effect of foreign ownership by using domestic-acquired firms as the control group. After controlling for the acquisition effect that exists in domestic acquisitions, we find no evidence that foreign ownership can bring additional productivity gains to target firms, though both foreign and domestic acquisitions bring productivity improvements to target firms. In contrast, a strong and robust finding is that foreign ownership significantly improves target firms' financial conditions and exports relative to …

Innovation Outcomes Of Knowledge-Seeking Chinese Foreign Direct Investment, Xianming Wu, Nathaniel C. Lupton, Yuping Du

Faculty Publications

Purpose

The purpose of this paper is to investigates how organizational learning, absorptive capacity, cultural integration, specialization of the acquired firm and characteristics of transferred knowledge impact innovation performance subsequent to overseas acquisitions.

Design/methodology/approach

Survey responses from 222 Chinese multinational enterprises engaged in overseas acquisitions.

Findings

Differences between acquiring and acquired firms’ capabilities, while having a positive direct influence, suppress the positive impact of organizational learning and absorptive capacity, suggesting that multinationals require some basic level of capabilities to appropriate value from overseas acquisitions.

Research limitations/implications

This paper investigates the impact of knowledge-seeking overseas acquisition of Chinese multinationals on innovation …

Foreign Investment In Eastern And Southern Europe After 2008. Still A Lever Of Growth?, Béla Galgóczi, Jan Drahokoupil, Magdalena Bernaciak, Petr Pavlinek

Faculty Books and Monographs

Editors:Béla Galgóczi,Jan Drahokoupil, and Magdalena Bernaciak

Chapter, Foreign direct investment and the development of the automotive industry in central and eastern Europe, authored by Petr Pavlinek, UNO faculty member.

This book investigates the role that foreign direct investment (FDI) in central-eastern and southern Europe has played in the post-crisis period, comparing patterns across countries and sectors.

An overarching objective of this publication is to assess the extent to which FDI can still be seen as a key driver of economic development, modernisation and convergence for Europe’s low- and middle-income economies, taking into account also the risks and limiting factors associated …

Characteristics And Performance Of Foreign Direct Investment In Retail Trade: The Case Of Japanese Firms, Jianping Liang, Jing'an Tang, Ben S. Liu

WCBT Faculty Publications

In the international business development, foreign direct investment (FDI) as a general phenomenon has been extensively studied, yet the understanding of particular characteristics of FDI in the retail industry remain limited. The success of international retail trade relies heavily on the understanding of consumers in the host countries. Therefore, this paper analyzed the characteristics and performance of foreign direct investment (FDI) in retail trade using the Japanese FDI data (JFDI) from 1986-2001 as a case. We found (1) an overall trend for JFDI to move from the developed countries to developing countries; (2) a modest correlation between subsidiary size and …

Socially Responsible Foreign Direct Investment: A Challenge To Tncs In Emerging Markets, Xiaowen Tian, Moxi Song, Ran Tian

Xiaowen Tian

A widening gap between the rich and the poor is found in most, if not all, emerging market countries that have recently opened up to FDI and is threatening the sustainability of economic progress in these countries. The study finds strong evidence that FDI contributes to the widening gap between rich and poor regions through negative productivity spillovers in the largest emerging market of China, and provides some theoretical explanations. The study discusses implications of the findings for transnational corporations in making socially responsible investment and for emerging market countries in attracting foreign investors to poor regions.

Impacts Of China’S Foreign Direct Investment In Sub-Saharan Africa, Jian Zhang, Ilan Alon, Yanan Chen

Faculty Publications

This paper examines the impacts of foreign direct investment, as well as China’s FDI on GDP growth of Sub-Saharan African countries from a macroeconomic perspective. By using the data from 44 Sub-Saharan African countries from 2003-2010, our GMM results show that neither China’s FDI nor FDI net inflow in SSA has significant effect on economic growth of SSA countries. The possible explanations about the insignificant results include crowding out effect of China’s FDI on domestic investment, the declining in outward FDI in traditional sectors and rising in service sector which ignored in the current model, and the types of sectors …

Adapting To Change: The State Of Singapore Private Enterprise In China, Wilfred How, Caroline Yeoh

Research Collection Lee Kong Chian School Of Business

One of the most affluent and developed nations in its region, the city-state of Singapore relies largely on tapping global resources for economic growth, to ameliorate its tiny land area and accompanying lack of natural resources. Its current prominence is to a great degree owing to an early recognition of the need for such, and a well-documented stratagem of expanding its foreign direct investments (FDIs) as a means to stimulate economic development (Huff, 1995; Murray and Pereira, 1995) and strengthen the city-state’s ‘external economy’ - one which saw the island progress through a number of distinct phases of overseas investment …

A Study Of The Effects Of Foreign Direct Investment On The Economy Of The State Of New Hampshire Since 1973, Eric J. Allain

Honors Theses and Capstones

The purpose of the thesis is to determine the impact that foreign direct investment has had on New Hampshire. New Hampshire as a state was impacted far less severely than much of the rest of the country, which could be considered surprising given the relatively high cost of housing in the state. I believe that part of what made New Hampshire more recession resistant is having the right foreign companies providing employment. To do this, I will be looking at FDI as a percentage of GDP over the previous 40 years and looking for a correlation between a higher percentage …

Outward U.S. Foreign Direct Investment Performance During Recent Financial Crises, Lucyna Kornecki

Accounting, Economics, Finance, and Information Sciences - Daytona Beach

Foreign direct investment (FDI) plays an extraordinary and growing role in the global markets and represents an integral part of the U.S. economy. This research has descriptive character and focuses on the latest trends in outward United States foreign direct investment (US FDI) illustrating the impact of the recent financial crises on FDI performance.

The study analyzes the outward US FDI stock contribution to the global FDI stock and its performance during the last decade including geographical and sectorial distribution. The next paragraph focuses on outward US FDI corporate players ranking MNC’s by revenue and foreign assets. The essential part …

Three Essays On Banking Foreign Direct Investment, Tamrat Workalemahu Gashaw

Dissertations

This dissertation investigates three aspects of banking foreign direct investment (BFDI). One striking development in the banking sector over the past two decades is the significant increase in BFDI. Multinational banks are now major players in the global financial system in terms of their asset positions, loan amounts, and operational scales. Despite this significant trend in BFDI, few empirical studies exist explaining observed international BFDI trends.

The first essay investigates the factors determining a bank’s decision to invest abroad. I first develop a two-asset portfolio selection model to identify determinant factors, and then employ a three-way error component model for …

Competitiveness In India And China: The Fdi Puzzle, Penelope B. Prime, Vijaya Subrahmanyam, Chen-Miao Lin

International Business Faculty Publications

Given their growth records, large markets, and reformed economic systems, both China and India appear to be equally likely candidates for foreign direct investment (FDI). Yet, China has received substantially more FDI. The literature comparing FDI in these two countries is small, and does not provide conclusive evidence to explain this puzzle. Applying the Porterian framework of the competitiveness of nations to compare China and India, we garner evidence that differences in demand, factor conditions and firm strategy, structure and rivalry are not sufficient to explain the differential in the two countries’ FDI flows. Differences in related and supporting industries, …

Fdi In Central And Eastern Europe: Business Environment And Current Fdi Trends In Poland, Lucyna Kornecki

Accounting, Economics, Finance, and Information Sciences - Daytona Beach

The Central and Eastern European Countries (CEEC) acknowledge foreign direct investment (FDI) as an essential tool in the development and modernization of their economies. The first part of this paper centers on economic stability and FDI inflows in the CEE indicating the Polish leadership in inward FDI inflow. The section of this study focuses on Poland and provides a description of business environment and current FDI trends in Poland. It analyzes the factors influencing the inward FDI in Poland, such as: economic stability, cost of labor, EU membership, regulatory framework. It presents the current FDI trends in Poland, such as: …

The Impact Of Terrorism On Foreign Direct Investment: Which Sectors Are More Vulnerable?, Shivani Agrawal

CMC Senior Theses

The impact of conflict and violence on foreign direct investment (FDI) is not a topic that has been done justice by the literature, and what few studies exist have contradictory results. This paper studies the impact that transnational terrorism has on FDI inflows by economic sector, in developed countries. Results indicate a statistically significant negative correlation between terrorist events and total FDI inflows. Amongst a list of 12 broad industrial sectors, FDI inflows for manufacturing, trade and repair, and construction were found to have a statistically significant negative correlation with terrorist events.

Reconsidering International Tax Neutrality, Michael S. Knoll

All Faculty Scholarship

For decades, U.S. international tax policy has shifted back and forth between territorial-source-exemption taxation and worldwide-residence-credit taxation. The former is generally associated with capital import neutrality (CIN) and the latter with capital export neutrality (CEN). One reason why national tax policy has shifted back and forth between those benchmarks is because it is widely accepted that a tax system cannot simultaneously satisfy both CEN and CIN unless tax rates on capital are harmonized across jurisdictions. In this essay, I argue that the international tax literature contains two different and conflicting definitions for CIN. Under one definition, which goes back at …

Japanese Business And Tennessee: A Look At The Past, Present, And Future, Paul D. Weiler

Chancellor’s Honors Program Projects

No abstract provided.

Managing Fdi Technology Spillovers: A Challenge To Tncs In Emerging Markets, Xiaowen Tian

Xiaowen Tian

Prior studies on foreign direct investment (FDI) technology spillovers have offered little guidance to transnational corporations (TNCs) on how to protect and exploit technology across borders. The present paper argues that TNCs can manage technology spillovers through selection of entry modes, selection of technologies, and selection of investment priorities in the affiliates they establish in foreign markets. A number of hypotheses are derived from theoretical analyses and are tested against firm-level data from China. The findings of the paper have significant implications for TNCs that face fierce competition from local firms in emerging markets.

30 Years Of Foreign Direct Investment To China: An Interdisciplinary Literature Review, Marc Fetscherin, Hinrich Voss, Philippe Gugler

Faculty Publications

The purpose of this paper is to examine how scholarly research on Foreign Direct Investment (FDI) to the People’s Republic of China has evolved and been shaped using bibliometrics analysis of 422 journal articles published in 151 journals between 1979 and 2008 on that topic. The literature is dominated by the fields of Economics, followed by Business and Management, Planning and Development and International Relations, which together account for 95% of all publications. Ten percent of the most productive journals are responsible for 40% of all publications and 63% of all citations received. By means of citation mapping, four main …

Foreign Direct Investment And Macroeconomic Changes In Cee Integrating In To The Global Market, Lucyna Kornecki

Accounting, Economics, Finance, and Information Sciences - Daytona Beach

This study relates to the post communist era in the Central and Eastern Europe (CEE) and focuses on foreign direct investment (FDI) as a factor facilitating the globalization process while stimulating economic growth in the host countries. The first part of this study describes the globalization process and inward FDI performance index (CEE vs. World). The second part reflects macroeconomic changes in the post communist CEE and examines macroeconomic indicators, including GDP per capita, economic growth rate, unemployment and inflation. The third section focuses on the association between inward FDI stock and economic growth in the CEE.