Do FDI patterns differ between manufacturing and service sector in CEE countries

In the paper, we presented results of the research, realized with the goal to test main determinants influencing on FDI stock in manufacturing and services in transitional countries, precisely CEE countries. Some of the conceptual issues identified under possible differences of FDI determinants in manufacturing and services we started with were： （1） What are the most important determinants of FDI in manufacturing and services？ （2） Are there significant differences between the main influencing determinants/factors between manufacturing and services？ （3） Are there significant differences between FDI determinants for developing countries/transitional countries and industrial countries？ （4） What are the implications for policies and strategies to attract FDI in different industries for developing countries？ Dependent variable used in this paper is the FDI stock p/c （NACE 1-digit） into manufacturing and service sector for each observed CEE country, in the period 1999-2006. In case of our sample countries, a set of possible FDI determinants was selected from the pool of traditional and institutional-related determinants in the literature, and relevant indicators available. Empirical analysis was conducted by the regression assessment of panel data, using the set of data for CEE countries, studied over eight years. We estimated fixed effects model and OLS with panel-corrected standard errors （PCSEs） using Prais-Winsten to take into account the AR（1） process. Two out of four traditional variables showed differences between the manufacturing and service sector： （a） Inflation, as the indicator of macroeconomic instability, was not statistically significant for manufacturing sector but it was significant for service sector; （b） wages had statistically significant influences on the FDI in manufacturing sector, but had no influence on service sector. Looking at the results of testing indicators we had found significant differences between all indicators： （a） Privatization influenced on FDI attractions in manufacturing sector and it was significant for service sector, with negative influence; （b） wages had statistically significant influences on the FDI in manufacturing sector, but had no influence on service sector; and finally （c） other two traditional variables-market size indicated through GDP p/c and openness of economy had the same results for both, manufacturing and service sector.     

论外商直接投资对我国经济发展的影响

章首先根据计量经济学原理,建立了二元线性计量经济模型,利用1983年－1998年的国内生产总值和外商直接投资数据,对外商直接投资对中国经济增长的积极影响进行了计量分析。然后,章较为详细的分析了这种积极影响的产生机制,并在此基础上提出了有关的建议。     

China in East Asia: The process and implications of regionalization

This paper assesses the impact of foreign direct investment on China's integration into the East Asian regional economy. The phenomenal growth of investment since 1992 has both benefited from, and also fuelled, the growth of local autonomy in post‐Mao China. The central state's ability to control the process of integration has subsequently been significantly undermined as the relationship between the local and the international becomes ever more important. While the tendency to emphasize low cost production advantages has attracted considerable inward investment in some areas, impressive short‐term growth rates may hide less beneficial long‐term consequences for China's position within East Asia, and for the trajectory of China's development in general.     

Public opinion towards welfare state reform: The role of political trust and government satisfaction

The traditional welfare state, which emerged as a response to industrialization, is not well equipped to address the challenges of today's post-industrial knowledge economies. Experts and policymakers have therefore called for welfare state readjustment towards a ‘social investment’ model (focusing on human skills and capabilities). Under what conditions are citizens willing to accept such future-oriented reforms? We point at the crucial but hitherto neglected role of citizens’ trust in and satisfaction with government. Trust and satisfaction matter because future-oriented reforms generate uncertainties, risks and costs, which trust and government satisfaction can attenuate. We offer micro-level causal evidence using experiments in a representative survey covering eight European countries and confirm these findings with European Social Survey data for 22 countries. We find that trust and government satisfaction increase reform support and moderate the effects of self-interest and ideological standpoints. These findings have crucial implications not least because they help explain why some countries manage – but others fail – to enact important reforms.     

Asymmetrical rivalry between China and Japan in Africa: to what extent has Sino-Japan rivalry become a global phenomenon?

Abstract

To what extent is China–Japan rivalry a global phenomenon, and what is the nature of the rivalry they engage in outside their own region? Literature on Sino-Japanese rivalry abounds, but it pays scant attention to the relevance of the rivalry outside East Asia. This article argues that Sino-Japanese rivalry has indeed become a global phenomenon, that various forms of the rivalry are evident in Africa, and that they are mostly of an asymmetrical nature. Quantitatively, China’s contribution to Africa is far greater than that of Japan, with the exception of foreign direct investment (FDI). Qualitatively, though, Japan has a stronger sense of the rivalry than China has, revealing a psychological aspect to the asymmetry as well. Contextually, the types of activity that Chinese and Japanese actors carry out in Africa are not necessarily the same, which makes the rivalry all the more asymmetrical. The rivalry has become more apparent recently, not only because of the rise of China but also because of a change in the meaning of ‘Africa’ – from a region of ‘poverty’ and ‘hunger’ to a region of ‘economic opportunities’. That said, Africa – to a greater or lesser degree in each of its countries – still suffers from conflict and instability. As a result, the ability of Japan and China to exert power and influence throughout Africa is somewhat restricted.     

Chinese and Japanese investment in Southeast and South Asia: case studies of the electronics and automobile industries

Abstract

This article uses extensive fieldwork data to focus on the question of how Chinese and Japanese companies are competing in neighboring countries of Asia, and what economic forces will shape their future growth in the region. It begins by briefly discussing the history of Chinese and Japanese investment in the South and Southeast Asian regions. It traces the development of Japanese overseas investment policies, as well as China's more recent ‘Going Out’ government program to encourage overseas flows of capital. It then builds on prior political economy work as it uses case study focuses, with primary data based on the author's fieldwork research in several nations of Southeast Asia and in India, of the two key sectors of automobiles and electronics. It compares and contrasts the investment strategies of companies from each country, as well as the successes and failures of investments in the industries. It finds that Japanese companies’ advantages lie in industries utilizing advanced technology and management skills. Though the Japanese continue to lead in many areas, including automobiles, they have begun to face competition and potentially reduced profits in vital manufacturing areas. Meanwhile, Chinese overseas companies have made significant advances in the consumer electronics sector, using low prices and good quality, though overseas automobile investments have gained little traction. The article concludes that, if the Chinese can improve their product quality, capitalize on improving managerial skills and a deeper level of experience in the region, and establish brands they can sell with reliable distribution networks, Japanese companies could face losses to their Asian neighbor in these important parts of the continent they have dominated for decades.     

The regulatory state in developing countries: Redistribution and regulatory failure in Brazil

Following the traditional doctrine of the “regulatory state”, regulatory agencies should be given very focused mandates and stay away from the politicized realm of distributive policies and decisions. An opposing perspective would state that if regulatory agencies can contribute to economic redistribution, positive results such as network expansion, economies of scale, and fiscal efficiency will ultimately lead to lower levels of regulatory failure. This article tests whether, in countries of high socio-economic inequality, such as Brazil, the active incorporation of distributive considerations by regulatory agencies leads to lower levels of failure. Through the analysis of the activities of seven Brazilian network regulatory agencies, the article develops theory-driven expectations and tests these expectations using crisp set Qualitative Comparative Analysis (csQCA). It concludes that not prioritizing redistribution is a necessary but not a sufficient condition for regulatory agencies' failure. In most types of failure, a lack of priority to redistribution leads to failure when combined with low regulatory capacity and low levels of competence.     

The impact of employee perception on the successful institutionalisation and implementation of performance management systems in developing countries: The perspective from Ghana's public service

Performance management (PM) has become a key instrument in the quest to ensure optimal operations by organisations in the public sector. Some scholars, though, believe that PM has failed because of employees' negative perception and management's exclusion of employees from its development. Studies on the relationship between employee perception of PM and its effectiveness in the public sector are limited. We argue that management must value employee perception more highly than they do at present because it is unlikely employees would be willing to take an active part in implementing a change with which they disagree or that they see as having no value. This study examines the effect of employees' perception on the institutionalisation and implementation of PM in developing countries, with specific reference to Ghana.     

The domestic politics of international development in South Korea: stakeholders and competing policy discourses

Abstract

The paper examines the domestic politics surrounding South Korea's foreign aid policy. It delineates the institutional characteristics and strategic interests of key government and non-government stakeholders, and suggests an analytical framework to comprehend the country's aid policy regime. It suggests that two competing policy discourses exist – one emphasising ‘intellectual leadership’ and the other ‘ethical leadership’ as the key principle of aid policy. In practice, the country's political leadership promulgates a complex amalgam of these discourses in alignment with their own political imperatives and interests. The paper discusses ‘Global Saemaul Undong’ as such an example under the incumbent Park Geun-Hye administration.     

Science Use in Regulatory Impact Analysis: The Effects of Political Attention and Controversy

Scholars, policy makers, and research sponsors have long sought to understand the conditions under which scientific research is used in the policy‐making process. Recent research has identified a resource that can be used to trace the use of science across time and many policy domains. U.S. federal agencies are mandated by executive order to justify all economically significant regulations by regulatory impact analyses (RIAs), in which they present evidence of the scientific underpinnings and consequences of the proposed rule. To gain new insight into when and how regulators invoke science in their policy justifications, we ask: does the political attention and controversy surrounding a regulation affect the extent to which science is utilized in RIAs? We examine scientific citation activity in all 101 economically significant RIAs from 2008 to 2012 and evaluate the effects of attention—from the public, policy elites, and the media—on the degree of science use in RIAs. Our main finding is that regulators draw more heavily on scientific research when justifying rules subject to a high degree of attention from outside actors. These findings suggest that scientific research plays an important role in the justification of regulations, especially those that are highly salient to the public and other policy actors.     

The material production of virtuality: innovation,cultural geography and facticity in derivatives markets

Abstract

In the existing literature, the ‘virtual’ nature of financial derivatives is often commented upon, but how these products are brought into being has seldom been examined in any depth. This article analyses the development since 1970 of organized financial-derivatives trading in the US and UK (in particular, of derivatives exchanges and of the British financial spread-betting industry), with the goal of examining the ‘material production of virtuality’. The article explores the similarities and differences between technological innovation and innovation in derivatives; discusses the role of the ‘internal’ cultures of financial markets and of the wider culture (in particular, the legal traces of hostility to gambling); and analyses the requirement of ‘facticity’ for the measure underlying a cash-settled derivative, focusing in particular on the most important such measure, British Bankers’ Association LIBOR (London interbank offered rate).