The Korean experience in FDI and Sino-Korean relations

The possibility of regional cooperation in the Yellow Sea Rim (YSR) area has been discussed since the early 1980s. In recent years, Korean outbound foreign direct investment (FDI) has increased rapidly and it will be growing much further. In the new phase of the global economy and the post-cold war political environment, Korean firms consider the socialist countries, especially China, to be attractive new partners for trade and investment projects. Foreign investment contributed to economic growth in developing countries. In the early stage of industrialization in the 1970s, the share of foreign firms amounted to about one-tenth of the total manufacturing employment in Korea. Similarly, outbound Korean FDI could also play an important role in the industrialization of the LDCs in Southeast Asia and China. A case study of a Korean multinational corporation reveals that the direct employment effect of Korea’s FDI is extensive in terms of money invested. In spite of the complementarity in economic structure and the phase of development between Korea and China, the prospect of Korea’s outbound FDI is not all clear. However, one can safely assume that the unit scale of FDI projects will increase. Unlike in the past, the large Korean corporations are now preparing more than a few fair-sized projects in China. The positive impact of those FDI will be significant. The YSR cooperation, if successful, could create efficient economic cooperation based on complementarity between Korea and China. The Korean outbound FDI would pave a road to such regional cooperation. This article is the revised version of a paper prepared for the International Conference on Regional Development in the Yellow Sea Rimlands, held February 18–21, 1991. The conference was cosponsored by the Korea Research Institute for Human Settlements, the State Science and Technology Commission of China, and the East-West Center of Honolulu, Hawaii.     

国际直接投资的变化及对国际经济关系的影响

二十世纪九十年代以来 ,全球化进程加快 ,跨国直接投资对此起了较大的推动作用。跨国直接投资呈现出新的特征 ,本文分析了国际直接投资的新变化及对国际经济关系造成的影响。     

The political economy of capital flows and capital controls in Malaysia

This paper explains the neo-liberal reform measures – foreign direct investment (FDI) policies, financialisation and labour market reform – of the Korean economy following the 1998 economic crisis. It investigates how they have influenced a process identified as the bipolarisation of Korea. Although the increase in FDI inflows has contributed to the economy by overcoming balance of payments difficulties, it has led to increased income inequality. As a result of labour market reforms that targeted labour market flexibility, the number of non-regular/non-standard and part-time workers has increased significantly over the past decade. Labour market reform and financialisation aggravated the bipolarisation.     

东盟区域经济合作的投资效应研究

在2002年东盟自由贸易区建成之际,学术界用各种指标深入分析了其贸易效应。但东盟发展的目标却是要成为一个具有竞争力的投资区。因而要更好地理解和评价东盟区域经济合作,必须对其直接投资效果也进行分析。本文通过回顾20世纪90年代以来东盟吸收FDI的变化,考察了东盟区域经济合作的直接投资效应,并重点分析了其投资效应不显著的原因在于其对东盟综合区位优势的改善不明显,并没有有效地提高东盟区域整体竞争力。     

Divergent paths,divergent outcomes: linking differences in economic reform to levels of US foreign direct investment and business in Kazakhstan and Uzbekistan

This article compares two transition economies that have diverged in their progress on important economic reform areas and then seeks to link these differences to their resulting levels of investment and business. For this study, interviews were conducted with firm representatives that had invested or conducted business in Kazakhstan and Uzbekistan in order to determine the areas of reform that were the most important for their investment and business decisions. The analysis indicates a relationship between Kazakhstan's advanced economic reforms in such areas as foreign investment legislation, tax legislation, banking system reform, and higher levels of investment and business. Uzbekistan's lack of progress in these reform areas has affected the level of investment in the country, but not the number of firms conducting business. This was primarily because firms could secure financing for the business through the US Export–Import Bank.     

日本对东盟直接投资的变化及评价

东盟各国是日本在亚太地区的一个重要的投资地,但20世纪90年代中期以来,随着日本对外投资战略的变化和东盟区域经济合作的加强,日本对东盟的直接投资在规模、国别格局、行业特征等方面都发生了一些变化.本文主要探讨这些变化并对其进行评价.     

The Possibility of Economic Reform in North Korea

This article argues that North Korea can achieve an economic catch-up after decades of economic isolation and stagnation by promoting an economic opening focused on foreign trade and investment in a sustained manner. An analogy is been made with the case of Fujian Province in China, which has accomplished economic catch-up, mainly due to Taiwanese investments. To realise its potential, it is argued that North Korea treats its foreign direct investment (FDI) from South Korea as intra-Korean investment. The article also discusses the diverse modes of engagement with foreign capital that are available for North Korea, considering its own capability (absorption or management capabilities), rivalry among possible foreign investors, implications for market structure (monopoly or more competition), the nature of target technologies or facilities, opportunity for learning and transfer, and so forth. Finally, the article discusses the economic and political preconditions for such and economic catch-up.     

Economic Interdependence and Security on the Korean Peninsula: The Impact of North Korean Special Economic Zones

Abstract

Given North Korea’s desire to maintain nuclear weapons—and barring its unexpected collapse—how can the US and its allies establish and maintain a peaceful Northeast Asia? Current US policy alternatives do not offer an effective means for removing North Korean nuclear weapons without creating many more serious problems that jeopardize a stable future for Northeast Asia. However, by engaging in foreign direct investment (FDI) through North Korea’s special economic zones, the United States and other nations can engage North Koreans at all levels of society and build a future environment of cooperation and stability. Such a long-term engagement policy will prove more successful than isolation, sanctions, or military force, and will bolster regional actors’ efforts to develop additional stability-inducing policies.     

从FDI流动看马来西亚经济发展的隐忧

2009年外商对马来西亚的直接投资大幅下滑,马来西亚从东南亚地区的引资"优等生"转变为"差等生",说明马来西亚经济吸引力显著下降的事实,这无疑将对当前马来西亚经济改革的进程和目标产生十分重大的不利影响.基础条件不佳、经济上的长期结构性问题以及改革政策反复是影响马来西亚吸引外资能力的最主要因素.     

Getting the economic context right: the WWI analogy and contemporary East Asia

ABSTRACT

World War I has become the “go-to” analogy for understanding the contemporary security dynamic in East Asia, especially as it concerns US-China relations and the possibility of war. However, this analogy fails to account for the fundamental changes in economic flows in the current environment, specifically the growth and proliferation of foreign direct investment (FDI). Capital flows were primarily portfolio investments in 1914, while FDI flowed from great powers to secondary, allied states. This is not representative of East Asia today, where FDI flows between possible belligerents in any future conflict and global value chains link states within and across regions. Ultimately, World War I may no longer provide a satisfactory analogy for understanding the impact economic interdependence has on modern war given FDI’s importance in the global economic system.     

东莞对东盟国家的经济外交

本文讨论了东莞与东盟国家的经贸关系以及东莞地方政府对东盟国家的经济外交。文章认为中国在改革开放的过程中,一些地方政府与外资逐渐形成一种新的跨境合作模式,而这种合作模式是否成功的关键则在于地方政府经济外交的能力。     

近20年来东南亚华商在中国大陆的投资

1978年中国实行改革开放政策以来,国民经济取得了较快的发展,年平均增长率超过两位数。1980年代以来,东南亚华商的经济实力有了较大的加强,中国与东南亚国家的关系也得到了改善,东南亚华商开始向中国进行投资,尤其是在广东和福建侨乡地区。东南亚华商的投资,极大地促进了侨乡社会经济的发展。东南亚华商在中国引进外资的过程中,起到了先锋和桥梁的作用,在以侨引台、以侨引外等方面起了重要的作用。     

The challenge of combining FDI and regional development in Indonesia

Indonesia has been severely hurt by the recent economic crisis, which has been accompanied by social tensions. For a sustainable long-term recovery, it is essential that Indonesia attracts FDI inflows, and manages to achieve a reasonably equal spatial development. FDI is important since other capital funds are scarce and an equal spatial development is important to avoid social tensions. However, there is a possible contradiction between FDI and even regional development since FDI tends to locate in clusters. This article discusses FDI and an even spatial development in Indonesia, and offers some policy suggestions for a sustainable long-term recovery.     

Foreign investment,black economic empowerment and militarised patronage politics in Zimbabwe

This paper seeks to analyse Zimbabwe's economic empowerment policy. It argues that while there is a felt need for Zimbabwe to redress colonially induced injustices and racial imbalances in the ownership of the means of production, a ‘one-size-fits-all’ approach to the indigenisation of the economy is fundamentally flawed as it deters investors and may further damage the country's already extremely fragile economy. The implementation of the land reform programme contributed to the decline of Zimbabwe's economy: lessons learnt from the programme and related economic policies of the past 15 years highlight the problems of empowerment policies that are intertwined with patronage politics. The government's negation of basic economic principles and failure to open spaces for critical engagement with all relevant stakeholders epitomises an ill-advised indigenisation and economic empowerment strategy. The policy will not promote and retain foreign investment;nor are there sustainable prospects of internally oriented accumulation strategies on the horizon.     

Effect of Wage,Inflation and Exchange Rate on the Investment Policy in Sidoarjo District,Indonesia

The purpose of this study is to know and analyze the effect of wage variables on regional investment policy, the influence of inflation variables on regional investment policy, and the influence of exchange rate variables on investment policy of the Region on Labor. In this study, the population taken is the entire workforce whose data comes from the Central Bureau of Statistics in Sidoarjo which amounted to 64,792 workers. Data analysis using multiple linear regressions with the help of SPSS program version 20 showed that there is an influence of wages, inflation, and exchange rate on local investment policy. Based on the results of calculations and test results conducted, it can be explained that there is an effect of wages on regional investment of labor followed by the characteristics of inflation on labor that affects the exchange rate of investment. This illustrates for policymakers which empirical evidence exists in a series of time to test the theoretical basis while establishing fiscal, monetary, or exchange rate policies to stabilize output and employment by using interest rates, money supply, and exchange rates as instruments for achieving goals.     

20世纪90年代以来日本财政政策失效成因

二战后,日本通过实施凯恩斯的积极财政政策,实现了经济的高速增长。然而,伴随着20世纪90年代经济的长期萧条,传统的财政政策失效。本文通过巴罗模型检验了日本各项财政支出对经济增长的影响。实证分析结果表明：公共投资效果不佳成为日本财政政策失效的主要原因,而优化公共投资结构、提高公共投资乘数、调整财政支出结构,防范财政风险可以提高日本财政政策效应。     

Transnational Strategic Networks and Policymaking in Chile: CORFO's High Technology Investment Promotion Program

Once prey to government patrimonial practices, the Corporación de Fomento de la Producción (CORFO), Chile's economic development agency, overcame this problem in the early 1990s. In 2000 CORFO established a High Technology Investment Promotion Program to promote foreign direct investment in high technology and other nontraditional sectors. This article applies concepts of political survival and cooperation to explain how CORFO moved from patrimonialism to technocratic independence. Then it demonstrates that governments possessing technocratic independence but lacking other characteristics typically associated with successful investment promotion efforts can develop transnational strategic networks of individuals, business associations, and universities to facilitate their learning process in order to devise more effective strategies to promote nontraditional FDI.     

China’s environment: Foreign trade and investment and international organizations

Not only is China’s environment in decline, but China’s contribution to global environmental deterioration is significant. Because of the global implications of China’s environmental pollution, international action is needed. Foreign trade and investment should be encouraged to incorporate environmental concerns and technology transfer, especially in the area of energy efficiency. Continued and enhanced international cooperation as well as loans and investment through international and regional organizations should also contribute to improving China’s and the global environment. Finally, China should assist in this process by continuing domestic economic reform and the open door policy. Environmental and economic benefits will result from efforts in these three areas.     

The “Greening” of China: Progress,Limitations, and Contradictions

China’s rapid economic growth in the last three decades has been fuelled by energy-intensive investment and manufacturing, which have become instrumental for China to become the world’s largest economy based on purchasing power parity, and for the United States and the European Union to have access to cheap consumer goods. China’s development strategy, however, has generated a serious domestic environmental crisis, which has also accelerated the global climate emergency. In addition, the 2008 economic crisis led to a collapse of China’s external demand, inducing the leadership to support domestic investment – including investment in environmental projects – as an alternative source of effective demand. By setting ambitious green targets and by adopting strategic policy initiatives, China has become the world’s largest investor in renewable energy. Yet China remains the world’s largest coal consumer and the world’s largest carbon dioxide emitter. The Chinese economy nears a crossroad: will it be able to maintain its commitment to green energies or will it fall back to its historical reliance on fossil fuels to sustain growth? This article evaluates the interplay between China’s economy and environment over the course of the reform period, and investigates the set of forces that impinge upon China’s ecological future.     

Party Politics and Economic Policy in the New Germany

Germany experienced economic malaise in the 1990s, raising the question of whether or not the political system is capable of reform. The reactions of the political parties to economic problems demonstrate an enduring set of norms about economic policy which include a generous social welfare system and an emphasis on co-operation between business and labour. However, there is a general agreement about the need for policy reform, and recent moves by the Red-Green coalition indicate a willingness to undertake significant steps towards a slightly more pluralist and liberal set of policies. The dynamic of party politics over the last decade indicate a mature, stable political system capable of reform.