The role of oil and gas in Kazakhstan's foreign policy: Looking east or west?

This study examines the role of oil and gas in the making of Kazakhstan's foreign policy. It argues that Kazakhstan has been following a multi-vector foreign policy in relation to its oil-led development and the geopolitics of exporting oil from this landlocked region. The significance of geopolitical considerations and the resulting pragmatism of Kazakhstan's leadership only allow a limited role for national identity and internal political dynamics in the making of its foreign policy. Kazakhstan's geopolitical imperatives force the country to keep good relations with Russia and China as well as with the US and the EU, as counterbalancing partners.     

The Role of Foreign Direct Investment and State Capture in Shaping Innovation Outcome in Russia

This article explores the linkage between foreign direct investment, grand corruption (that is, state capture) and innovation in Russia's regions in between 1997 and 2010. The results indicate that during the period under investigation both foreign direct investment and state capture were the significant determinants of innovation outcome. What is also interesting is that a positive impact of state capture on innovation through foreign firms, and a negative impact—through exporting—was observed.     

Foreign Direct Investment Spillovers and Productivity Growth in Indonesian Garment and Electronics Manufacturing

Inflows of foreign direct investment generate externalities that spill over to domestic firms and raise their productivity. This article examines the extent of spillover effects of foreign direct investment for firms in the highly disaggregated garment (ISIC 3221) and electronics industries (ISIC 3832) in Indonesia. Both are export-intensive industries, but differ greatly in technological sophistication and labour intensity. Changes in both the productivity level and rate of growth in each industry are decomposed into the effects of technological change, technical efficiency change and scale efficiency change and then the impacts of spillovers on each component and on total productivity are estimated. The findings suggest that foreign direct investment generates a positive effect on total productivity change, technical efficiency change, technological change, and scale efficiency change in the garment industry. In contrast, foreign direct investment contributes significantly negatively to total productivity, technological change and scale efficiency change, but has no significant effect on technical efficiency change in the electronics industry.     

Determinants of foreign direct investment and entry modes of Polish multinational enterprises: A new perspective on internationalization

This study uses firm data to examine the locational trends of foreign direct investment projects undertaken by Polish companies. The findings of the study are consistent with the evolutionary models of internationalization. Companies in the early stages of internationalization are motivated by markets and resource seeking, whereas efficiency seeking and strategic asset seeking are significant motivators in the advanced stages of internationalization. However, our results with respect to Polish cross-border acquisitions by service companies and greenfield foreign direct investments by industrial or manufacturing companies did not confirm the evolutionary model findings. We found evidence that, in both cases, investments are motivated by the need for efficiency or strategic assets.     

Technology Trade

This study addresses the question of why some countries import more research and development-intensive goods than others. Using a panel data set of 80 countries for the period 1970–1995, results indicate that domestic investment, foreign direct investment and the quality of intellectual property rights systems positively affect technology imports. However, the higher the percentage of the workforce with primary studies, the lower technology imports are. Moreover, intellectual property rights tend to reinforce the positive role played by foreign direct investments in importing technology while the ability of imitation reduces the effect of intellectual property rights.     

Multinational Enterprises and Technological Effort by Local Firms: A Case Study of the Malaysian Electronics and Electrical Industry

It is often assumed that foreign MNEs are the driving force behind technological development in developing economies but it has become evident in recent years that the actions of MNEs in isolation from the domestic economy will not significantly improve the stock of technology in an economy. This study, therefore, examines the determinants of local firms' decisions to undertake technological effort, not only in isolation, but also in the context of linkages between domestic firms and MNEs. There is evidence that linkages between MNEs and local firms are important in explaining technological effort by local firms but direct technological assistance from MNEs does not seem to play a major role in fostering increased technological effort by local firms.     

Investment penetration,agrarian change,and political conflict in developing countries

This research employs a cross-national design to explore the association between direct foreign investment in agriculture, changes in the agricultural labor force, and political conflict and violence in developing countries. The results reveal different patterns of relationships for Latin American, African, and Asian societies. In Africa, foreign agricultural investments are related to higher employment in the agricultural sector, which in turn is associated with lower levels of political protest. In Latin America, Foreign agricultural investments were directly related to more protest, suggesting a xenophobic nationalist reaction to foreign penetration in this sector. There were no apparent relationships between these variables among Asian states. These results challenge the often-found contention that economic disturbances in the agricultural sector are a fundamental cause of violent uprisings and rebellions. John M. Rothgeb, Jr. is a professor in the Department of Political Science at Miami Univeristy in Oxford, Ohio 45056. He is the author ofDefining Power: Influence and Force in the Contemporary International System (St. Martin’s Press, 1993),Myths and Realities of Foreign Investiment in Poor Countries (Praeger Publishers, 1989) and numerous articles in professional journals. His current research interests include the study of the international and domestic implications of interdependence and the analysis of how economic resources may be used to exercise power in international relations.     

Agglomeration Advantages and Capability Building in Industrial Clusters: The Missing Link

Accumulation of technological capability is crucial for industrial growth and competitiveness of firms, particularly in the context of liberalisation and increasing international economic integration. The article sheds new light on the forces driving capability-building by complementing the micro-economic perspective on learning with a meso-economic perspective that takes account of interaction effects arising from firms' embeddedness in regional networks. The missing link at the interface between the two levels is explored by means of a taxonomy linking various agglomeration advantages to investments in technological effort. The framework results in new policy-relevant insights about the factors underpinning the acquisition of capabilities in comparison to conventional studies. A case study about farm equipment manufacturing in Pakistan's Punjab province is used as an empirical illustration.     

Do African Manufacturing Firms Learn from Exporting?

We use firm-level panel data for the manufacturing sector in four African countries to investigate whether exporting impacts on efficiency, and whether efficient firms self-select into the export market. Based on simultaneous estimation of a production function and an export regression, our preferred results indicate significant efficiency gains from exporting, which can be interpreted as learning by exporting. We show that modelling unobserved heterogeneity by a flexible approach is important for deriving this conclusion. A policy implication of our results is that Africa would gain from orientating its manufacturing sector towards exporting.     

Foreign direct investment and technology capabilities in the developing countries: a review

Economically developing countries are facing the very difficult problems of mastering the skills involved in newly emerging science-intensive industries. To improve technological capabilities, they must expend resources to establish themselves in industries that are technologically mature. Transfer of knowledge is the crux of the direct investment, so in this context transfer of technology (ToT) plays a vital role in the economic and technological development. So, the wide spread discussion of “economic globalization” has involved an important debate on the role of technology in “economic globalization” and economic growth. Much of that debates has concentrated of corporate behaviour within the developed countries but transfer of technology (ToT) combines the development of indiginous technological capabilities also. At the same time, organizational skills, procedure, and assumptions within the globalization of technology need to be adapted to fit the new technology in the developing countries. Thus this paper try to explain the story of foreign direct investment (FDI) in the economic growth and development of technology through technological capabilities that provides for an increasingly intense end of domestic competition. The paper also analysis and review the effect of access to technology and level of competition, on the level of technological capabilities by inference a strategy for the success acquisition of technology in developing countries.     

China’s road from socialism to global capitalism

Abstract

China’s engagement with global capitalism is driven by the emergence of a statist and private transnational capitalist class. Nevertheless, aspects of China’s foreign policy from the Maoist period still echo today. Consequently, elements of third world solidarity and opposition to Western domination continue to exist as China’s past is redefined to further its transnational strategies in Latin America and the US. The main Chinese investments in South America have been in energy and infrastructure among the left lead countries of the Pink Tide. In the US, Chinese capital has grown despite heated political rhetoric. This paper will examine how economic ties in South and North America reflect past and present conditions, and if China has initiated a non-Western globalisation.     

Foreign aid and the economic growth of developing countries (LDCs): Further evidence

The objectives of this article are to revisit the critical role that foreign aid presently plays in the economic growth of the LDCs and to examine the nature of its utilization in those countries which heavily rely on foreign aid. Other sources of economic growth such as capital (physical and human capital), raw labor, technological changes, and the degree of political and civil liberties will also be considered. Using average cross-sectional data for eighty countries over the 1971–1990 period, the study shows that foreign aid has a statistically positive effect on economic growth in developing countries. Lack of political and civil liberties is found to have a negative, but statistically marginal impact on economic growth. A policy implication which may be drawn from the study is that foreign capital inflow can have a beneficial effect by supplementing domestic savings rather than replacing them. Bichaka Fayissa, Ph.D., is Professor of Economics at Middle Tennessee State University, Murfreesboro, TN. He has published in theInternational Journal of Social Economics, World Development, Keil World Economics, Quarterly Review of Economics and Finance, Applied Economics, Economia Internazionale, Journal of Economics and Finance, Journal of Legal Economics, and several other journals.     

Creating and Maintaining Global Connections: Agro-business and the Precarious Making of Fresh-cut Markets

This article reconstructs the evolution of a multinational fruit processing company from Ghana. Starting from the perspective that firms more generally aim at achieving stability in intra- and extra-organisational relations, the article explores the practical means (organisational forms, resources, technologies, strategies and routines) through which the case study company achieved relational stability in global markets, but also shows how this was eroded in changing market environments. Extending out from this case study, the article also addresses the questions why some agro-business firms in Africa have developed more sophisticated high-value market connections while others have not and whether foreign direct investments can serve as catalysts for agro-industrialisation.     

Dutch disease and the Azerbaijan economy

The novelty of this study is that it empirically tests four hypotheses of the Dutch Disease in the Azerbaijan economy while systematically controls for other possible explanations of the observed processes over the period 2000–2007. The study concludes that an “absolute de-industrialization” has not taken place in Azerbaijan, rather the country suffers from a “relative de-industrialization” in the non-oil tradable sector. Additionally, the paper shows that the non-tradable sector has substantially expanded during the 2000–2007 period. Analysis also presents that the government expenditures have created a “spending effect”, which is more crucial than the “resource movement effect”. Furthermore, it was found that rapid increases in the wages and the non-tradable prices have led to appreciation of the real exchange rate in Azerbaijan. Finally, the study reveals that foreign direct investments inflow to the oil sector is harmful for non-oil exports and therefore, it contributes to deepening of resource, or oil, dependence. Findings in this paper support the view that to obtain a diversified economy with a long-term balanced growth development of the non-oil tradable sector should be of the major focus for the policymakers.     

Can foreign direct investment help Poland catch up with the EU?

The paper examines the extent to which the inflow of foreign direct investment (FDI) helps Poland to catch up with the EU.FDI can facilitate the process of catching up mainly through transfer and diffusion of technology, which leads to upgrading of technological and innovative potential of a host country. The paper is aimed at assessing whether FDI is correlated with the innovation processes in different branches of the Polish industry. A regression analysis conducted in this paper has confirmed that, except for low-technology industries, FDI impacts Poland’s innovation efforts and thus helps Poland to catch up with the EU.     

全球公共产品视角下的中国国际发展合作

中国的对外援助事业随国际、国内形势而变化。近年来官方对国际发展合作的重视不仅促成中国对外援助指导思想的转变,也为对外援助向国际发展合作转型奠定了理念基础。中国为发展合作提供全球公共产品的实践不断丰富:一是基于本国成功经验而开展的减贫国际合作成为重要公共产品,二是通过创新农业技术合作方式为解决全球粮食安全问题提供更多公共产品,三是借助三方合作更好地创新公共产品供给模式,四是持续加强全球卫生公共产品供给。中国对外援助在取得积极成效的同时,也面临经济、技术实力有限、援助项目可持续性不足、受援国国家治理与互不干涉内政之间协调困难、国际发展合作的话语权有待提升等挑战。未来,中国应注重从制度建设、资金筹集、可持续性提升、受援国能动性发挥、国际话语权提升等方面做更充分准备。     

An analysis of mergers and acquisitions in Mexico: 1985-1996

The recent devaluation of the Mexican peso and the resulting “Mexican syndrome” has opened up a world of opportunities for foreign investors. Mexico with all of its economic problems is still seen by many investors as a sound economy with the necessary ingredients to stage a strong comeback. Economic crises often lead to an escalation of corporate restructuring such as mergers, acquisitions and joint-ventures, both, domestic as well as cross-border. This paper examines the M&A trends in Mexico over the period 1985-1996.

The results indicate that cross-border M&A deals have increased during the nineties, with Europe being a major participant since 1995. As far as the industrial sectors are concerned, the study shows that very few M&A deals have been completed in the construction, transportation, and petroleum industries. The managers of multinational firms should take note of this and public administrators should attempt to attract foreign capital towards these sectors. A sound distribution infrastructure is very essential in order to attract much needed foreign capital to the country.

The study also finds that relatively few cross-border M&As have been completed with state-owned enterprises. With the aggressive reforms of the Zedillo government and the privatization of the transportation, electricity, and petroleum sectors, there is bound to be an increase in competition and opportunities for investments in these sectors.

Finally, managers of multinational corporations who are targeting Mexico, should be fully aware of the differences in culture and ownership status of target firms. This study shows that a large number of the deals have been done with privately-owned firms, and would therefore need good negotiation skills.     

Poverty and Morality: Religious and Secular Perspectives

This article analyses the pattern of technology imports and its influences on China's indigenous technology. Indigenous technology consists of two dimensions: technology generation measured by R&;D and spending on technical upgrading; and application measured by output value of heavy industry and its export value respectively. The analysis reveals increased reliance on foreign loans to finance technology imports, diversified sources of supply, and strong emphasis on the purchase of disembodied technology after the late 1970s. Based on time series data from 1960 to 1991, statistical evidence indicates that imported technology has significantly enhanced China's technological build‐up. Imported technology is positively correlated with both dimensions.     

The Return of Political Risk: Foreign-Owned Banks in Emerging Europe

Political risk—risk that investments are damaged by policy action of authorities—increased during the financial crisis due to controversies about the distribution of accumulated losses among stakeholders. Authorities interconnected by cross-border banks considered unilateral policies that minimised losses for domestic stakeholders at the expense of their foreign counterparts. This is at odds both with the assumption behind financial integration which presumes multilateral responses to cross-border shocks and with the typical definition of political risks that ignores the fact that not only host-country, but also home-country authorities can create such risks. This paper recasts the definition of political risk and reviews instances when political risk materialised within the EU banking market between 2007 and 2011. The analysis reveals that the EU regulatory framework needs to be enhanced to contain resurgent political risks systematically rather than through ad hoc interventions of the EU and international bodies.     

Forms of technological modernization and human resources management in privatized argentine companies

After the period of hyperinflation (1989, 1990) the Argentine economy stabilized and most of public companies were privatized. The return on investments was concentrated on promoting the technological change which adopts two basic forms: systemic modernization and revamping of existing teams.

The first variant -ilustrated by the national telephone network- makes obsolete the knowledge accumulated during the period when the company was public. To confront the structural deficiency of knowledge and experience which result, the private operators invest massively in transfering educational technologies and in the development of costly and sofisticated internal systems of training, while they negotiate numerous and various agreements of cooperation with educational system institutions, public as well as private.

In the second variant - illustrated by a steel and metallurgic company - the preexisting knowledge continues being necessary even though it may need a vis-a-vis updating facing the new demands which are stated referring to the productivity, quality, effectiveness and productive efficiency in markets which are open to competition.

Taking into account the significant achievements which are being obtained by this second alternative of modernization - most of the privatized companies fall into this pattern- the article invites to a reopening of the old debate on technological blending.