Korean foreign direct investment in Europe: The determining forces

Korea's more complete integration into the world economy has been stunted by past government policies aimed at preserving comprehensive control over the domestic economy. This situation has recently changed owing to prevailing structural weaknesses in the Korean economy and the dictates of the global competitive environment. Consequently, the level of Korean overseas investment has escalated, particularly in Europe — the Triad region which has traditionally attracted limited inward FDI from Korea's large chaebol companies. This paper examines the determining forces that lie behind this trend. It is recognized that early Korean investments in the EU were principally driven by reactionary motives when confronted by actual or anticipated policy threats. While it is argued that the pretext for such investment has not significantly diminished, the imperatives of globalization together with emerging economic conditions in both east and west Europe have provided considerable incentives for more proactive FDI strategies to be adopted. The recent announcements by senior chaebol of intended large‐scale investments in Europe suggest that this new pattern is becoming increasingly apparent.     

The influence of foreign direct investment on contracting confidence in developing countries

This paper examines whether foreign direct investment (FDI) influences confidence in commercial contracts in developing countries. While the research on how host countries’ policy environments encourage FDI inflows has flourished, scholars have paid less attention to how the policy environment and local actors’ beliefs might, in turn, be affected by FDI. This is surprising because multinational enterprises are well‐recognized political and economic actors across the world. We expect that their increasing economic salience will influence the policy environments in which they function. By employing an innovative measure of property rights protection – contract‐intensive money – we examine how foreign direct investment influences host countries’ contract‐intensive money ratio in a large panel time series of both developed and developing countries from 1980 to 2002. Our analysis suggests that higher levels of FDI inflows are associated with greater confidence in commercial contracts and, by extension, the protection of property rights in developing countries.     

The effects of different entry modes of foreign direct investment on labor rights in the developing world

Although many studies have investigated the effects of foreign direct investment on labor rights in the developing world, no studies of which we are aware have considered how differences in the mode of entry—that is, mergers and acquisitions (M&As), cross-border joint ventures (JVs), and greenfield investments (GIs)—taken by multinational corporations affect labor rights in host countries. Using panel data for up to 113 developing countries from 1985–2002, we find that foreign firms that enter via M&As tend to have minimal, or slightly negative, effects on labor rights, whereas JVs and GIs support improvements in workers’ rights. Overall, the results suggest that the sectors and motivations associated with JV and GI modes of entry increase labor demand, improving the bargaining power of workers.     

Informal institutions and foreign investment in China

During the reform era, China has been very successful in attracting foreign direct investment (FDI) for its economic development. That this has taken place despite a rather weak legal system in China challenges conventional institutional theories, which emphasize the centrality of effective state institutions to economic development and international cooperation. This article suggests that the solution to the puzzle lies in the informal institutions underlying FDI development in China. On the basis of extensive interviews in the mid- and late 1990s, I find that networks of personal connections (guanxi), which are pervasive in Chinese society, have played a major role in facilitating FDI flows to China. They have done so by complementing and compensating for the weak Chinese legal system. This article dispels a number of misconceptions about the nature of guanxi, discusses its relationship with friendship, bribery, and social capital, and analyzes the conditions underlying the transnationalization of guanxi networks. It concludes with some important caveats to the major thesis and a discussion of possible future scenarios of institutional development in China.     

Effect of foreign direct investment,remittances, and foreign aid on economic growth: Evidence from two emerging South Asian economies

This paper analyzes the effect of foreign direct investment, remittances, and official development assistance on economic growth in India and Sri Lanka. The study uses annual time series data of both countries for the period 1980–2016. In order to find the short‐run and long‐run relationship among the variables, we use Granger causality test and vector error correction model. We also carry out a vector decomposition analysis to predict the forecast variance error of the future periods and impulse response function to analyze the effect of shocks in the independent variables on that of the dependent variable. Our results indicate that foreign direct investment and remittances have a significant impact on economic growth in India, whereas in Sri Lanka, foreign aid and remittances play an important role in enhancing economic growth.     

Institutional competitiveness,social investment,and welfare regimes

Are the rather generous welfare regimes found in most European countries sustainable; that is, are they competitive in a globalizing economy? Or will they, on the contrary, be crowded out by the more austere and less expensive regimes generally found in liberal Anglo‐Saxon countries? We first discuss this issue conceptually, focusing on the notions of institutional competitiveness, social investment, and short‐term and long‐term productivity. We then briefly present the results of an empirical study of 50 social indicators of policies and outcomes in 20 Organization for Economic Co‐operation and Development (OECD) countries during the early 2000s. We conclude that welfare regimes have not been forced to converge through a “race to the bottom.” There remain three distinct ways to face the “trilemma” of job growth, income inequality, and fiscal restraint: Nordic countries achieve high labor market participation through high social investment; Anglo‐Saxon countries attain the same objective through minimal public intervention; while Continental European countries experience fiscal pressures because their social protection schemes are not promoting participation to the same extent.     

The impact of foreign direct investment on the growth of the tourism sector in Jordan (1980–2016)

The study aimed at measuring and analyzing the impact of foreign direct investment (FDI) on the growth of the Jordanian tourism sector during the period 1980–2016. In order to test the stationarity of the variables of the study model, the augmented Dickey–Fuller and the Philips Perron tests were applied. The results showed that the variables were not stationary at their levels, but they become so when taking the first difference with the intercept. The study also found a positive long‐run relationship between the ratio of FDI to gross domestic product (GDP) and the ratio of tourism revenues to GDP according to the cointegration test used, which was the Granger causality test. The test showed a one‐way causal relationship between the ratio of FDI to GDP and the ratio of tourism revenue to GDP. According to the estimation results, the error correction model showed that there is a positive impact of FDI on the growth of the tourism sector. Based on the results reached, the study recommended the need to pay attention to the tourism sector, enhance its role in economic development, and work to provide an optimal investment environment by providing all necessary means for and assistance in establishing such investments. All obstacles that limit the flow of the FDI in the Jordanian tourism sector should be removed.     

Partnering to beckon them home: public‐sector innovation for diaspora foreign investment promotion

This article examines a little‐studied component of public administration existing in most countries around the world and particularly important for developing countries: national investment promotion agencies (IPAs). Diasporas are an increasingly important and relatively untapped resource for development and many homeland governments view diaspora foreign investment as key to their economic development. In addition to being generally under‐resourced, many IPAs struggle to identify ways to effectively target, cultivate and facilitate diaspora homeland investment (DHI). To accomplish these goals, these public‐sector entities are beginning to identify and leverage key partnerships in the NGO sector. We describe the services IPAs offer and enumerate the challenges they face associated with DHI. Drawing on three illustrations of IPA–NGO partnerships, we develop preliminary tools for identifying and designing partnerships for the purpose of promoting DHI based on their scope, function and degree of formality. Copyright © 2007 John Wiley & Sons, Ltd.     

Foreign direct investment and repression: An analysis across industry sectors

The impact of foreign direct investment (FDI) on repression in developing nations is still disputed. Some argue that FDI improves economic development and exports human rights values. Others criticize the exploitation of cheap labor and resources, which may lead to tensions and government oppression. Previous studies have employed aggregate FDI data with conflicting results. Alternatively, I propose that the effects depend on what kind of FDI enters a country. I build a sectoral framework to discuss how skills and technology levels, as well as the motivation for FDI, can mediate the impact. I then examine the link in a panel data analysis (1983–2010) in 121 countries, integrating sectoral FDI in several resource, manufacturing, and service industries. The results show that investment in high-skilled and high-tech sectors has positive effects. The results are robust across several measures for repression, and when accounting for sector size, regional and time effects.     

Competitive partners in development financing: China and Japan expanding overseas infrastructure investment

Abstract

In the aftermath of the global financial crisis, with the world in search for new economic engines, China and Japan have explicitly given their answer through their expansion of overseas infrastructure investments. This study focuses on the flagship sector of high-speed railways (HSR) and examines what kinds of development financing China and Japan have adopted in making these investments. It asks the following questions: What similarities are there in the Chinese and Japanese approaches to investments in overseas infrastructure, and how do they differ from traditional Western development financing? Also, in what ways have China and Japan changed their approaches to overseas infrastructure projects during this process? It argues that in the process of expanding overseas infrastructure investments and competing for infrastructure projects, China and Japan have become ‘competitive partners’ in challenging the traditional norms of development financing represented by the Washington Consensus and the Development Assistance Committee (DAC). To be more specific, China and Japan have adopted each other’s practices of tied commercial financing, heavy government involvement, focusing on physical infrastructure and industrialization, and showing respect for host-country forms of governance. In particular, by joining China in the new game of exporting infrastructure and through its own ‘quality infrastructure investment’ initiative, Japan has broken out of the constraints of DAC norms as an aid donor and endorsed some fundamental Chinese approaches to development and development cooperation, which in their turn were inspired by earlier Japanese practices.     

Regulatory controls as barriers to entry in government procurement

Prepared for the Twelfth Annual Research Conference of the Association for Public Policy Analysis and Management, San Francisco, California, October 18–20, 1990. Revised February 1991.     

深圳发展风险投资的制约因素与应对措施

经过几年的发展 ,深圳市风险投资已经初具规模 ,初步形成了基本的框架体系。到 2 0 0 1年 8月止 ,深圳市风险投资总规模达 10 2亿元 ,共有投资机构、投资管理机构、创业孵化中心、专营担保机构、咨询顾问机构、研究机构、中介交易机构和境外创业投资公司驻深机构等风险投资机构 131家。 2 0 0 0年 10月成立了本行业的自律组织———深圳市创业投资同业公会。每年在深圳举行的“中国国际高新技术成果交易会” ,国内、香港甚至美国的资本市场以及深圳的国际高新技术产权交易所 ,深圳产权交易中心等为风险投资提供了良好的退出渠道。一、深圳发…     

Public policy and competition amongst foreign investment projects: A case study of the Daya Bay economic development zone in South China

By the second half of the 1980s, economic reform in China had produced differentiated interests between regions and a decentralized authority in the country. The central government had increasingly delegated its powers over funding, foreign exchange, resources and investment to local governments, and local governments in different regions had gained more autonomy to control the resources. This situation resulted in the proliferation of power centres at local levels where independent policies were generated to protect and pursue regional interests and resist the general policies of the centre. Conflicts of interest and competition intensified and became more popular than during previous periods. This tendency particularly manifested itself in local policy making concerning the introduction of foreign investment and projects. The case of the founding and evolution of the Daya Bay economic development zone in South China indicates the extent to which the competition between different coastal regions, and between the coastal regions and the central government had been generated. In this case study, the contextual changes that created a competitive environment will be reviewed briefly; the general conditions and motivation to establish the zone will be introduced; then the focus will be on analysing a series of policy formulations surrounding the competition for foreign investment projects. The case study is concluded by an assessment of the ‘incremental’ nature of Chinese policy making.     

Inequality in symbolism: Cultural barriers to female candidates in political advertising

Abstract

More women are successfully running for U.S. political offices. However, further advances may be limited by women's inability to symbolically portray themselves as effective leaders in political media. We see the dilemma most clearly in political ads for female candidates. These texts juxtapose in the viewer's mind the legacy of women's images in advertising — homemaker, mother, sex object — with the ideal of male‐dominated political leadership. In our culture we still identify the male as political and public‐minded and the female as involved in private concerns.

A feminist semiotic reading and comparison of political ads from a Maryland Senate race between two women (Linda Chavez and Barbara Mikulski) and one from George Bush (as an example of a male standard) illustrate the difficulty women face as candidates in portraying themselves as effective leaders. Bush's ad shows the ease with which men can be portrayed as symbolic Father ready to lead the country. Chavez uses her ads to establish her relationship to patriarchy; she will be a leader defined by maintenance of her roles as wife, mother, and daughter. Chavez's opponent, Mikulski, chooses a potentially riskier strategy and “breaks the rules” in seeking a new way to portray women in some of her ads. Mikulski creates a new kind of symbolic space for women that draws on the power of maternal relationships; she will be a leader who follows the example of her brave great‐grandmother. The develoment and acceptance of more powerful symbols for female candidates, such as motherhood, means a greater possibility for women's electoral victories and increased diversity in politics.     

基于制度经济学的工会组织分析

在我国企事业单位尤其是外资企业中,普遍存在工会组建困难、职工维权举步维艰、职工参与管理阻力重重、工会自身权益得不到保障等现象,原因之一在于社会各界对工会组织的性质和作用认识上存在较大的偏差。     

Corruption and women in cabinets: Informal barriers to recruitment in the executive

Research on corruption and women in politics has mainly focused on legislatures, generally finding that corruption decreases the election of women. This article turns the spotlight to the executive branch—an arena where selection is less transparent than recruitment to legislative seats—and examines if corruption decrease the share of ministers who are women. Drawing on feminist institutionalist theories, we posit that in an environment of high political corruption, (male) elites involved in cabinet formation will tend to appoint ministers whom they can trust with secretive tasks. In systems with corrupt networks, relative newcomers, such as women, should face obstacles to career advancement. The article tests this reasoning empirically on a global sample of countries across time. Using a new indicator measuring corruption in executive bodies, we find support for our argument; corruption tends to hinder women's presence in cabinets, albeit only in democracies and not autocracies.